EU Omnibus explained: simplifying sustainability obligations

What is the EU Omnibus package?

The EU Omnibus Simplification Package is a European Commission initiative first proposed in February 2025. Its aim is to meaningfully reduce the administrative burden of sustainability rules and strengthen the competitiveness of European companies. The proposal bundles changes to four existing frameworks – CSRD, CSDDD, EU Taxonomy and CBAM – into a single legislative package. It is still working through the co-decision procedure of the European Parliament and the Council; the final content may still change.

What are the goals of the package?

The Omnibus package is designed to make sustainability rules more proportionate and workable, without abandoning the underlying transparency objectives.

• Reduce the administrative burden on companies by an expected ~25 %
• Strengthen EU competitiveness, especially for mid-sized companies
• Improve coherence across the different sustainability frameworks

Proposed changes to the CSRD

The Omnibus proposal includes significant interventions in the scope and timeline of the CSRD. All changes are proposed, not yet finalised.

• "Stop-the-clock" postponements: deadlines for several waves of companies are proposed to be suspended and pushed back
• Higher size thresholds: the employee threshold is expected to rise to around 1,000, meaning far fewer companies would be in scope
• Reduced ESRS data set: the number of mandatory data points is proposed to decrease substantially

Proposed changes to the CSDDD

The Corporate Sustainability Due Diligence Directive is also targeted for simplification under the Omnibus package. The proposals envisage a phased and extended roll-out alongside lighter due diligence obligations in substance. Application thresholds are expected to rise, and the depth of supply-chain scrutiny required is set to be reduced. These changes are likewise still in the legislative process.

Proposed changes to EU Taxonomy and CBAM

The package also proposes adjustments to the EU Taxonomy Regulation and the Carbon Border Adjustment Mechanism (CBAM).

• EU Taxonomy: proportionality provisions are intended to ease the burden on smaller companies and reduce the reporting scope
• CBAM: a de-minimis exemption for small importers is proposed to reduce the burden for low-volume imports
• Both frameworks retain their fundamental orientation – the changes are proportionality measures

What does this mean for your company?

The underlying reporting and due-diligence obligations remain in place – the Omnibus proposal changes scope and timeline, not the objective. While the legislative process continues there is uncertainty about the final content. Companies should use the time to continue preparation and align it with the expected reduced scope.

• Don't stop preparing: the core obligations remain and lead time is valuable
• Follow the legislative status: the final content of the package is not yet settled
• Leverage the reduced scope: a structured approach today allows you to adapt quickly when changes are confirmed