EU Sustainability Update: CSRD & CSDDD Omnibus I Package

Nov 14, 2025

2 min read

On 13 November, Members of the European Parliament (MEPs) voted in favor of their negotiating position on the Omnibus I package, with 382 in favor, 249 against, and 13 abstentions. The vote signals support for reduced scope and simplified sustainability reporting and due diligence requirements for EU companies.

These are proposed changes, and the rules are not yet final. Final legislation will depend on trilogue negotiations between the Parliament, Council and Commission.

Download or read the full summary of proposed CSRD and CSDDD changes below.

Proposed changes as approved by the European Parliament

Corporate Sustainability Reporting Directive (CSRD)

Scope narrowed to include:
- EU companies with more than 1,750 employees and >€450 million net annual turnover.
- Non-EU companies with more than >€450 million in net turnover. The Parliament removed the requirement for an EU branch or subsidiary. The employee threshold was not raised.
Reporting standards simplified; sector-specific reporting becomes voluntary.

Corporate Sustainability Due Diligence Directive (CSDDD)

Applies to:
- EU companies with more than 5,000 employees and >€1.5 billion turnover
- Non-EU companies with >€1.5 billion turnover in the EU.
Climate transition plans are no longer mandatory.
No EU-wide civil liability — enforcement remains at the national level.

For a detailed overview of the proposed changes, download the summary below.

Next steps

Trilogue negotiations between the Parliament, Council, and Commission begin 18 November. The goal is to finalize the legislation by end of 2025, but details may shift as negotiations progress.

Potential implications for businesses

If the European Parliament’s position is finalized:

Fewer companies will fall under CSRD and CSDDD, shifting regulatory focus to the largest EU multinationals.
Administrative and reporting burdens will be reduced for mid-sized firms.
Raising the turnover threshold for non-EU companies reduces the scope of non-EU firms.
CSDDD enforcement will remain national, raising the possibility of fragmented implementation across the EU.
The EU’s broader push for harmonized, EU-wide sustainability transparency may slow down.

What this means for your business

Companies should stay alert for final updates as trilogue negotiations progress. Early preparation, especially for large EU and non-EU companies, can help manage compliance expectations and reporting strategy.

If you’re looking for guidance on navigating EU sustainability reporting and due diligence requirements, feel free to reach out. I help companies understand what these changes could mean for their operations and ensure compliance strategies are both practical and forward-looking.