Omnibus Simplification Package (EU)

The Omnibus Simplification Package is the set of measures with which the European Union has streamlined its corporate sustainability rules. Its stated aim is to cut the administrative and reporting burden on companies and boost competitiveness, without abandoning the goals of the European Green Deal.

The centrepiece is the so-called Omnibus I, formally adopted by the Council on 24 February 2026. The amending Directive (EU) 2026/470 was published in the Official Journal on 26 February 2026 and entered into force on 18 March 2026. It amends two key acts: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

Why the Omnibus package was created

After the CSRD took effect, many companies and member states argued that the disclosure obligations were too complex and costly, especially for smaller companies within scope. The Commission responded with a simplification strategy that bundles several rules into one package, hence the term omnibus.

As a first step, a directive known as stop the clock, adopted in 2025, had already postponed waves 2 and 3 of the CSRD by two years, buying time to renegotiate the substance.

What changes in the CSRD

The most visible change is the sharp reduction in the number of companies in scope. After the Omnibus, the CSRD applies to companies with more than 1,000 employees on average and more than EUR 450 million in net turnover, both criteria at once. Listed SMEs, which the original version would have covered, are exempted from the obligation. The first reports under the new framework cover financial years beginning on or after 1 January 2027, and the transposition deadline for the accounting and CSRD part falls in March 2027.

One common misreading is worth undoing: first-wave companies that now fall below the thresholds keep reporting financial years 2025 and 2026 unless their member state exempts them. They are not exempt by default.

The directive also settles the assurance debate: the level is and will remain limited assurance, and the planned move to reasonable assurance has been removed. The principle of double materiality remains the basis of reporting.

What changes in the CSDDD

On due diligence, the scope also narrows. The CSDDD now applies to EU companies with 5,000 or more employees and more than EUR 1.5 billion in net turnover (previously 1,000 employees and EUR 450 million). Non-EU companies come into scope above EUR 1.5 billion of turnover generated in the EU. Uniform application is set for 26 July 2029 and the transposition deadline for the directive is 26 July 2028.

One substantive change that is often overlooked: the obligation to adopt and implement a climate transition plan has been removed. Publication on the company website is required from financial years starting 1 January 2030.

Simplified ESRS and the voluntary standard

On 3 July 2026 the Commission adopted the delegated act containing the revised ESRS, which cut more than 60% of mandatory data points and more than 70% of all data points and remove voluntary disclosures. They apply to financial years beginning on or after 1 January 2027, with early application possible for 2026.

The same day, a separate delegated act adopted the voluntary standard for SMEs based on the VSME. It lets smaller companies report proportionately and acts as a cap on the information large companies can demand from their value chain. The simplification also touches aspects of the EU Taxonomy.

What it means for your company

• Check whether you are still within the scope of the CSRD and CSDDD under the new thresholds.
• If you fall out of scope, consider voluntary reporting with the VSME to respond to customers, banks and investors.
• Review the transposition deadlines in your country, since each member state must bring the directive into national law.
• Keep your sustainability report aligned with the revised ESRS.

How Manglai helps you

Adapting to a fast-moving regulatory framework calls for reliable, traceable data. Manglai helps you measure your environmental footprint and prepare your sustainability information in line with current EU rules. Discover how Manglai can help you stay compliant without getting lost in the fine print.