Omnibus Package approved: what changes in the CSRD, ESRS and CSDDD?

After months of business pressure and debate around competitiveness, the European Union has approved the so-called ESG Omnibus Package 2026: a reform that substantially amends the CSRD, the ESRS standards and the Corporate Sustainability Due Diligence Directive (CSDDD).

The official objective is to simplify the regulatory framework and reduce the administrative burden for European companies. However, the reform will drastically reduce the number of companies required to report under the CSRD (from around 50,000 to approximately 5,000) and simplify technical requirements.

Is it regulatory relief? Yes.

Does it mean ESG pressure disappears? Not at all.

Here’s exactly what changes, who is affected, and why (even if your company falls outside the mandatory scope, the strategic data challenge remains).

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Changes to the CSRD in 2026: new scope and thresholds

The most visible change concerns who must report. Under the previous framework, companies with more than 250 employees and annual turnover exceeding €50 million were subject to reporting obligations.

Under the Omnibus Directive, the thresholds increase significantly. Only companies with more than 1,000 employees and net turnover exceeding €450 million will be required to report.

The adjustment is substantial. Thousands of mid-sized companies that were preparing for compliance will now fall outside the mandatory scope.

What about non-European companies?

The rules change here as well.

For third-country companies, specific thresholds apply:

• €450 million in global turnover
• €200 million generated within the EU

Additionally, Member States may introduce exemptions for companies that had already started reporting under the previous regime but would now fall outside the revised scope.

The message is clear: the focus shifts back to large corporations.

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ESRS simplification: what changes in the reporting standards

If the CSRD determines who must report, the ESRS defines how and at what level of detail. In practice, they are the technical manual for sustainability reporting, and this is where the Omnibus introduces one of the most significant changes.

The original version included up to 1,073 possible data points, covering environmental, social and governance indicators at a highly granular level. Under the new directive, this number is reduced to 320, a 70% cut.

What does this mean in practice? Fewer mandatory indicators, fewer complex breakdowns and less documentation burden. The previously planned sector-specific standards are also removed, reducing technical pressure on specific industries.

Double materiality remains the core principle

One element remains unchanged: the principle of double materiality, which continues to underpin European sustainability reporting.

This means companies must assess and report from two perspectives:

• How environmental, social and governance factors impact their financial position (financial materiality).
• How their activities impact the environment and society (impact materiality).

Although the volume of required data is reduced, the underlying logic remains the same. Companies within scope must still conduct a structured double materiality assessment and justify what they report and why.

Another key point: the level of assurance

The initial roadmap envisaged a move toward “reasonable assurance,” a level of verification similar to financial auditing, deeper and more demanding. Under the Omnibus reform, this escalation is removed. Only limited assurance will be required, involving a less intensive level of review.

That said, simplification does not mean lowering the baseline standard. Companies within scope must still demonstrate coherence, traceability and consistency in their data. The difference lies in the volume of information, not in the need for robust structuring.

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New CSDDD 2026: changes in scope, timing and obligations

The reform goes beyond the CSRD. The Corporate Sustainability Due Diligence Directive (CSDDD), one of the most ambitious pillars of the European ESG framework, is also reshaped across three dimensions: scope, timeline and obligations.

First, the application threshold increases significantly. Only companies with more than 5,000 employees and €1.5 billion in turnover will remain in scope. This represents approximately 70% fewer companies than initially planned.

Second, implementation is delayed. The first compliance phase shifts to July 2029, providing additional time for affected companies to adapt internal processes.

Third, some of the most demanding provisions of the original text are softened. The explicit requirement for climate transition plans is removed, and the civil liability regime is no longer harmonized at EU level, each Member State will define its own national framework.

Additionally, a clause is introduced to protect smaller suppliers from excessive information requests by large corporations. This is particularly relevant for SMEs that, while not directly subject to the directive, are part of international value chains.

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Implementation timeline of the ESG Omnibus Package 2026

Understanding the reform also requires looking at the timeline, as changes do not take effect simultaneously.

• March 18, 2026: The Omnibus Directive enters into force at EU level.
• Until March 19, 2027: Member States must transpose it into national law.
• January 1, 2027: The new CSRD scope applies. Many companies will formally exit mandatory reporting at this stage.
• July 2028 / 2029: The revised CSDDD begins to apply under the new thresholds.

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Is this truly relief for companies?

From a strictly legal standpoint, yes: it represents relief.

Many mid-sized companies exit the mandatory perimeter. Fewer indicators must be reported and deadlines are extended. On paper, it appears positive.

But the market has not slowed down at the same pace:

• Investors continue demanding ESG metrics.
• Large corporations will still request data from their supply chains.
• Banks increasingly integrate sustainability criteria into risk assessments.
• Customers compare environmental performance more than ever.

Many companies had already begun organizing their data, assessing their impact and structuring internal processes. That goes beyond compliance, it means gaining control.

Undoing that work may seem like cost-saving in the short term. But it may also mean falling behind when regulatory pressure returns, because it likely will.

Ultimately, the difference is no longer just about being legally obligated. It is about being able to respond with reliable data when required. If your company falls outside the new mandatory scope, the decision is no longer regulatory. It is strategic.

At Manglai, we help organizations structure, automate and maintain their environmental data with rigor and efficiency, whether or not they are legally required to report.

Schedule a personalized demo.

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Frequently asked questions about the ESG Omnibus Package

When does the Omnibus Directive enter into force?

March 18, 2026. Member States have until March 19, 2027 to transpose it into national law.

Which companies remain subject to the CSRD?

Only those with more than 1,000 employees and over €450 million in net turnover.

Are the ESRS eliminated?

No. They are significantly simplified, reducing data points and assurance requirements.

Does the CSDDD still require climate transition plans?

No. The revised version removes that obligation and postpones application until 2029.

If my company falls outside the mandatory scope, can I stop reporting?

Legally, possibly. Strategically, it depends on your investors, customers and value chain position.