EU Omnibus package: what changes in the CSRD, ESRS and CSDDD

The Omnibus package is the largest simplification of sustainability rules the European Union has carried out to date. In a sentence: it raises the thresholds and pushes back the deadlines of the CSRD, adjusts the CSDDD and the EU Taxonomy, and takes the large majority of companies out of the direct obligation to report.

An important point to get your bearings: what the Commission called the "Omnibus" in February 2025 was a proposal. As of 2026 it is already law in force. This article sets out what the final version actually says, without speculation.

What is the Omnibus package?

The Omnibus was born as a response to the complexity and overlap of several EU ESG rules, above all the CSRD, the CSDDD and the Taxonomy Regulation. Its stated aim is to reduce the administrative burden and improve the competitiveness of European companies while keeping the objectives of the European Green Deal.

The name deserves a clarification: although it became popular as the "Omnibus Regulation", the piece that reforms the CSRD and the CSDDD is in fact a directive, Directive (EU) 2026/470. The process had two parts:

• "Stop the clock" (Directive (EU) 2025/794): approved and in force since April 2025, it stopped the clock by delaying the application deadlines of the CSRD for companies that had not yet started reporting.
• The substantive Omnibus (Directive (EU) 2026/470): the Council adopted it on 24 February 2026, it was published in the Official Journal of the EU on 26 February 2026 and entered into force on 18 March 2026. This is the one that changes the substance of the obligations.

Why was simplification necessary?

Before the Omnibus, each directive operated independently and companies often reported redundant information. On top of that, Member States were transposing the CSRD and the CSDDD with different timelines and criteria, which created asymmetries. The Omnibus seeks to harmonise and lighten the load without abandoning the overall sustainability framework.

Main changes to the CSRD

These are the verified changes introduced by the final version:

• A much higher reporting threshold. Only large companies with more than 1,000 employees and more than 450 million euros in annual net turnover remain obliged to report. Previously, the threshold started at 250 employees.
• Far fewer companies in scope. The Commission estimates that the Omnibus removes around 80% of the companies that were going to be obliged from the CSRD.
• A new timetable. Affected companies will report on financial years starting on or after 1 January 2027, with the first reports in 2028. First-wave companies that no longer meet the new threshold benefit from a transitional exemption for the 2025 and 2026 financial years.
• No more mandatory extension to listed SMEs. SMEs leave the mandatory scope and may report voluntarily using a simplified standard (VSME).
• Double materiality stays. Despite the simplification, double materiality remains the principle that organises reporting.

The cap on value-chain requests (VSME)

One of the most relevant changes for mid-sized companies is the cap on what their clients can ask of them. A company obliged by the CSRD cannot demand from a company in its value chain with fewer than 1,000 employees more information than that set out in the voluntary standard for SMEs (VSME). This prevents the cascade effect from passing the entire CSRD burden onto suppliers that are not themselves obliged. We develop this in our article on the CSRD for SMEs and the supply chain.

Changes to the ESRS

The Omnibus comes alongside a simplification of the ESRS. The original set had around 1,100 mandatory datapoints. In December 2025, EFRAG handed the Commission a draft of revised ESRS that substantially reduces the mandatory datapoints and removes the voluntary ones. The Commission is expected to adopt it as a delegated act around mid-2026. Earlier, a "Quick Fix" (July 2025) had already eased the start for the first companies obliged: we explain it in our article on the changes to the ESRS and the Quick Fix.

Changes to the CSDDD (due diligence)

The Corporate Sustainability Due Diligence Directive (CSDDD) is also adjusted:

• Later deadlines. Transposition is pushed back to 26 July 2028 and the first wave of companies will have to comply from 2029.
• Due diligence focused on the first tier. The analysis concentrates on direct business partners and extends to indirect ones where there is credible evidence of adverse impacts.
• Civil liability left to national law. The EU-level harmonised civil liability regime is withdrawn; liability is now governed by the law of each Member State.

Implications for companies in Spain

In Spain, the CSRD is transposed through the draft Sustainability Information Act (Ley de Información Empresarial sobre Sostenibilidad), which as of 2026 is still going through Parliament under the urgent procedure and had not yet been definitively approved. The previous reference rule is Law 11/2018 on non-financial information and diversity. This should not be confused with the obligation to register the carbon footprint: Royal Decree 214/2025 reinforced that obligation in 2025 for certain companies, a route independent of the CSRD.

Criticism and debate

The Omnibus has not been free of controversy. Environmental organisations and some investors warn that raising the threshold so far reduces the amount of comparable ESG information available in the market, just as its use to assess risks is growing. On the other side, many companies welcome the administrative relief and the greater clarity. The UN Global Compact has argued that the reform must keep the balance between competitiveness and climate ambition.

How to adapt to the new framework

1. Check whether you are still obliged. Review your headcount and turnover against the new threshold of 1,000 employees and 450 million euros.
2. If you fall out of scope, decide your strategy. Many companies that are no longer obliged choose to keep reporting (with the VSME or another framework) because their clients, banks and investors ask for it.
3. Get your data in order. Whether you report because you have to or voluntarily, the key is having traceable, auditable data. Automated measurement and reporting tools, such as Manglai's, speed up the collection.
4. Communicate transparently. Tell employees, clients and suppliers about your strategy under the new framework.

Frequently asked questions about the Omnibus

Is the Omnibus a regulation or a directive?

The piece that reforms the CSRD and the CSDDD is a directive (Directive (EU) 2026/470), even though it is colloquially called the "Omnibus Regulation". The earlier "stop the clock" was Directive (EU) 2025/794.

When does it apply from?

The substantive directive entered into force on 18 March 2026. The new CSRD thresholds apply to financial years starting on or after 1 January 2027 (first reports in 2028).

Which companies are still obliged to comply with the CSRD?

Large companies with more than 1,000 employees and more than 450 million euros in annual net turnover. The rest fall outside the direct obligation.

Does double materiality disappear?

No. Double materiality remains the guiding principle of reporting under the CSRD.

If my company falls out of scope, do I no longer have to report anything?

Not exactly. Your obliged clients may still ask you for data (limited to the VSME standard if you have fewer than 1,000 employees), and many companies keep reporting voluntarily for market reasons. We analyse this in why companies keep their reporting.

If you want to prepare your company for the new framework, at Manglai we help you structure your data and comply with the CSRD in a traceable and efficient way.