EU Omnibus I – European Parliament Votes on Amendments to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD)

8 October 2025

The European Parliament reached an agreement (“agreement 1”) on the scope of amendments to the CSRD and the CSDDD

13 October 2025

The Legal Affairs (JURI) Committee approved agreement 1

22 October 2025

The Parliament unexpectedly rejected agreement 1. It was a secret ballot therefore we don't know who voted for and against. This effectively sent the omnibus simplification package back to the Parliament to be voted on again in the next plenary session. Initially it was thought that the same draft would be voted on, but in the last couple of weeks it has become clear that more amendments were being tabled to increase thresholds and remove the requirements for transition plans

13 November 2025

The Parliament adopted a negotiating proposal which was put forward by a coalition EPP and right-to-far-right coalition passed with 382 votes in favour, 249 against and 13 abstentions

Thresholds

CSRD: 1,750 employees and net annual turnover of €450 million

CSDDD: 5,000 employees and a net annual turnover of over €1.5 billion

Reporting: only for larger businesses

The Parliament stated in its press release that reporting standards will be further simplified and reduced and sector-specific reporting will be voluntary.

Smaller companies would be protected from reporting requirements of their large business partners, which would not be allowed to request more information than what is set out in the voluntary standards.

Due diligence

MEPs want companies to take a risk-based approach to monitoring and identifying negative impact on people and planet.

Information: companies should seek to rely on information which is already available and only request additional information from smaller business partners as a last resort.

Transition plans

Companies would no longer be required to prepare transition plans to make their business model compatible with the Paris Agreement. The proposal states that the provisions for transition plans currently in the CSDDD “have been deemed to be disproportionate, particularly due to the administrative burden on companies and competent authorities, and could lead to legal uncertainty”.

Companies could face fines for not complying with guidance on due diligence requirements provided by the Commission and member states but the Parliament's draft limits these to (i) 5% of the net worldwide turnover of the company or (ii) for companies where the company has not reached the required threshold but the ultimate parent company has reached the thresholds for the previous financial year, 5% of the consolidated worldwide turnover of the ultimate parent undertaking.

Liability is proposed to be set at national level rather than EU level.

Digital portal

MEPs also want the Commission to establish a digital portal to give businesses free access to templates, guidelines and information on all EU reporting requirements complementing the European Single Access Point. The proposal also suggests that the Commission assess “the potential of technological solutions, including the use of trustworthy artificial intelligence” to support reporting and improve quality and accessibility.