EU unexpectedly stalls on omnibus simplification package
On Wednesday the European Parliament unexpectedly rejected its negotiating mandate on the proposed “omnibus” bill aimed at simplifying corporate sustainability and due diligence rules across the EU. More delays, extended discussions seem inevitable. There is a potential for the bill to be reworked in unanticipated ways before a revised vote in November.
The omnibus package, first introduced in February, is part of the European Commission’s push to reduce regulatory burden. It includes cuts to corporate reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) and corporate due diligence rules. The surprise rejection (by 318 votes to 309) suggests deeper divisions than expected over how far simplification should go.
The bill rejected included a significant scale back, including removing roughly 80% of companies from CSRD requirements by raising the employee threshold from 250 to 1,000, alongside a dramatic narrowing of the Corporate Sustainability Due Diligence Directive (CSDDD), which would limit due diligence to the largest firms with over 5,000 employees and €1.5 billion in revenue.
The ongoing Omnibus challenges at EU level underscores political tensions between simplifying regulatory frameworks and maintaining robust sustainability standards. Supporters of the bill argue that streamlined obligations would reduce red tape and help companies focus on climate action without being overwhelmed by disclosure burdens. Critics, however, warn that aggressive deregulation could weaken accountability and undermine the EU’s broader sustainability goals.
For the digital reporting community, the delay adds a layer of uncertainty to the timing for the future of structured sustainability disclosures in Europe. Parliament’s November vote will be one to watch.
For a deeper dive into the political dynamics and the next steps, read the full story on Politico.
