The European Parliament Approves the Omnibus I Package

On 16 December 2025, the European Parliament voted in favor of the Omnibus I package, adopting updated rules simplifying sustainability reporting and corporate due diligence. The directive passed with 428 votes in favor, 218 against, and 17 abstentions. This marks a major step in EU regulatory reform—but not without controversy. While the Omnibus aims to reduce administrative burden, critics argue it weakens safeguards for climate, human rights, and corporate accountability.

Below is a clear summary of what was agreed and what organizations need to know.

CSRD — Key Changes

• Scope reduced by ~90%: now applies only to companies with more than 1,000 employees and a net turnover of €450 million or more

• Listed SMEs removed from reporting requirements

• Companies previously in “Wave 1” that now fall out of scope will not report for FY2025–2026

• A review clause keeps the door open for potential future re-expansion

CSDDD / CS3D — Key Changes

• Applies to companies with more than 5,000 employees and €1.5 billion turnover or more

• Streamlined due diligence: focus on key risks; general scoping replaces full mapping; use of “reasonably available” supplier information

• Climate transition plans removed

• Harmonized civil liability dropped; penalties capped at 3% of global turnover

• Transposition by 2028, with compliance required from July 2029

Next Steps

1. Formal approval by the Council

2. Publication in the Official Journal (entry into force 20 days after publication)

3. Adjustment of implementation timelines by Member States and companies

Reactions on the Vote

The Omnibus vote has generated strong reactions from NGOs and civil society:

• Amnesty International criticized the deal, warning that limiting due diligence obligations to the largest corporations betrays human rights and climate commitments, leaving workers, communities, and ecosystems vulnerable.

• Responsible Investor noted that the vote reduces the administrative burden for companies but may weaken the effectiveness of ESG safeguards, raising questions for investors seeking responsible corporate behavior.

• Other NGOs and advocacy groups expressed concern that removing climate transition plans and harmonized liability undermines accountability, while some business associations welcomed the simplification for easing compliance challenges.

These perspectives highlight the tension between reducing regulatory burden and maintaining EU sustainability and human rights standards, a challenge companies must navigate carefully.

Recommendations for Companies

• Confirm your scope: Check whether your company falls under CSRD and/or CSDDD and adjust plans accordingly.

• Embed sustainability into strategy: Integrate ESG across operations, focusing on high-impact areas in your value chain.

• Engage stakeholders continuously: Keep investors, customers, employees, and suppliers informed — accountability goes beyond legal obligations.

• Monitor legislative changes: Stay alert to review clauses and potential updates to regulations.

• Leverage simplification as an opportunity: Leverage the regulatory relief period to strengthen long-term impact-driven strategies.

Takeaway

Regulatory simplification may ease the burden for some companies and buy time, but it does not remove responsibility. To genuinely boost competitiveness, the EU must uphold its sustainability values — and companies that keep momentum and embed impact‑driven strategies will differentiate themselves and lead the transition to a sustainable economy.

Sources:

• Easier sustainability reporting and due diligence for companies | News | European Parliament

• Reuters: EU Parliament Approves Omnibus Deal

• EU lawmakers approve sustainability Omnibus package

• EU: Deregulation deal on climate and human rights ‘betrays people and the planet’ - Amnesty International