EU Omnibus Directive – November 2025 Update

On 13 November, the European Parliament approved its negotiating position on the Omnibus I proposal with 382 votes in favour, 249 against and 13 abstentions. The file has now moved into trilogue negotiations with the Council and the Commission. This article explains the position the Parliament adopted in the November vote.

What is the Omnibus package about?

The CSRD (Corporate Sustainability Reporting Directive) came into effect on 1 January 2023 and requires large companies to report on their environmental and social impacts (ESG). However, the reporting obligations have increased administrative burdens for businesses.
In response, in February 2025, the European Commission published the Omnibus package, which proposes simplifying both CSRD and CSDDD and reducing administrative burdens.
The proposals have gone through several stages of the EU law-making process. In November 2025, the Parliament approved its own position on the Omnibus I package, and the file is now in trilogue negotiations between the Parliament, the Council and the Commission.

CSRD reporting thresholds

CSRD standardizes sustainability reporting, requiring companies to disclose environmental, social, and governance impacts in a uniform way.

In the Parliament’s proposal, the CSRD would apply only to large companies with:

more than 1,750 employees, and
at least €450 million in turnover.

Currently, the CSRD applies to companies that meet 2 of these 3 criteria: 250 employees, EUR 50 million in turnover, and EUR 25 million in total assets.

The original Omnibus proposal set the threshold at 1,000 employees, which would have excluded around 80% of companies from CSRD. The Parliament’s version reduces the number of companies subject to reporting even further.

CSDDD – due diligence obligations only for very large companies

The CSDDD (Corporate Sustainability Due Diligence Directive) requires companies to identify, assess, and manage human rights and environmental risks in their operations and supply chains.

The thresholds proposed by the Parliament would be:

EU companies: more than 5,000 employees and over €1.5 billion global turnover
Non-EU companies: over €1.5 billion turnover in the EU

Currently, the thresholds are more than 1,000 employees and at least €450 million turnover for EU companies.

The Parliament also proposes that:

Companies should use a risk-based approach: mainly rely on information they already have, and request extra information from small partners only as a last resort.
Companies would no longer need a transition plan to align their business model with the Paris Agreement.
Possible breaches would be handled at national level, and companies would have to fully compensate affected people.

New digital portal

The European Parliament proposed that the Commission establish a digital portal for companies to access, free of charge:

Reporting templates
Guidance and recommendations
Information on all EU reporting requirements

This would complement the existing European Single Access Point portal.

Read more about the Parliament vote on 13 November 2025: Sustainability reporting and due diligence: MEPs back simplification changes | News | European Parliament

What happens next?

As of 18 November 2025, the Omnibus I proposal has entered trilogue negotiations between the Parliament, the Commission and the Council. The final outcome will only be known once the negotiations are completed, so further changes are still possible.

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