Omnibus I Directive comes into force

What does the omnibus procedure stand for?

"Omnibus" derives from Latin and means "for all". In EU lawmaking, it refers to amending several legal provisions through a single legislative package. Although the procedure itself is not codified in separate legislation, it follows the standard EU rules for directives: the Commission submits a proposal, Parliament and Council deliberate, and member states then transpose the amendments into national law. The Omnibus package simplifying sustainability regulation (Omnibus I) forms part of a series of omnibus packages adopted in 2025 and 2026 to streamline various EU regulations.

Omnibus I: Adjustments to sustainability reporting and corporate due diligence obligations

The Omnibus I Directive introduces important amendments to sustainability and financial regulations, notably the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The EU seeks to reduce the reporting burden on companies, especially small and medium-sized enterprises, while promoting competitiveness and advancing the sustainability goals of the European Green Deal.

To achieve these objectives, EU reporting and due diligence obligations have been deferred and simplified, the number of companies required to produce reports reduced, and the reporting scope scaled back.

The main changes at a glance

• CSRD: The scope of the CSRD includes EU companies with at least 1,000 employees and more than 450 million euros in net turnover as well as non-EU companies that generate more than 450 million euros in net turnover in the EU. SMEs are generally exempt from CSRD obligations but can continue to report on a voluntary basis under the VSME standard. The CSRD reporting obligations begin on 1 January 2027. This means that in-scope companies must report for the first time under the CSRD in respect of the 2027 financial year.
• CSDDD: According to the Omnibus I Directive, the CSDDD now applies to EU companies with at least 5,000 employees and a net turnover of more than 1.5 billion euros as well as non-EU companies with a net turnover of more than 1.5 billion euros in the EU. The obligation to draw up climate transition plans and EU-wide civil liability will no longer apply. Maximum fines will be capped at three percent of global annual turnover.

The Omnibus I Directive also contains a review clause, according to which a possible extension of the scope of application of the CSRD and CSDDD would have to be examined at a later date.

The Omnibus I Directive came into force on 18 March 2026, 20 days after publication in the Official Journal of the EU. With regard to the CSDDD, the member states have until July 2028 to implement the rules. With regard to the CSRD, Omnibus I must be implemented by 19 March 2027.