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. Listed SMEs, which the original version would have covered, are exempted from the obligation.

In addition, the Commission must adopt a delegated act with simplified ESRS within six months of entry into force. The transposition deadline for the accounting and CSRD part is set for 19 March 2027. 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 companies with more than 5,000 employees and more than EUR 1.5 billion in net turnover. First compliance for in-scope companies is set for July 2029, and the transposition deadline for the directive is 26 July 2028.

Companies out of scope and the voluntary standard

For companies that are no longer obliged, the Commission has promoted a voluntary standard for SMEs, known as VSME, whose delegated act was expected around mid-2026. This framework lets smaller companies report proportionately and limits 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 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 simplified ESRS once they are published.

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.