Omnibus I CSRD and CSDDD Simplification: EP adopts negotiating mandate

What’s new?

On 13 November 2025, the European Parliament (EP) adopted its negotiating mandate on the European Commission’s (EC) proposal for an Omnibus directive simplifying sustainability reporting and due diligence requirements introduced by the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

What does the press release say?

The updated rules form part of the Omnibus I simplification package, proposed by the European Commission on 26 February 2025. For more information, please see our client note here.

Although the adopted text has not yet been published, the EP has issued a press statement outlining its proposals.

CSRD

• Scope: The employee threshold under the CSRD would be raised to 1,750 employees, with a net annual turnover of EUR 450 million. These thresholds would also apply to Article 8 taxonomy reporting.
• Reporting requirements: Reporting standards would be further simplified and reduced, with fewer qualitative details required. Sector-specific reporting would become voluntary.
• Digital portal: Members of the European Parliament (MEPs) have called on the EC to establish a digital portal to provide free access to templates, guidelines and information on EU reporting requirements, complementing the European Single Access Point (ESAP).
• Value chain cap: Smaller companies would be protected from excessive information requests by larger business partners, who would be limited to requesting only what is required under the voluntary standards.

CSDDD

• Scope: The thresholds would remain at over 5,000 employees and a net annual turnover of more than EUR 1.5 billion for EU companies.
• Due diligence: In-scope companies would be required to adopt a risk-based approach to due diligence under Article 8 of the CSDDD.
• Climate transition plan: The requirement to produce a climate transition plan under Article 22 would be removed, limiting obligations to mitigation targets and delaying their adoption by two years.
• Civil liability: Companies in breach of the directive would be held liable at the national, rather than EU, level and would be required to fully compensate their victims for damages.

Next Steps

On 18 November 2025, trilogue negotiations with EU member states commenced. Lawmakers aim to finalise the law by the end of 2025.