Omnibus I: EP position brings substantial simplifications
BDA AGENDA 21/25 | EXTRA OF THE WEEK | October 16, 2025
Omnibus I: EP position brings substantial simplifications
On October 13, 2025, the European Parliament's Legal Affairs Committee adopted its position on the Omnibus I Directive with 17 votes in favor, six against, and two abstentions. The aim is to reduce bureaucracy in EU sustainability rules. A practical legal framework will strengthen European companies and their sustainable competitiveness.
EU Sustainability Reporting Directive (CSRD): Higher thresholds and targeted exemptions
Companies with 1,000 or more employees will be required to report on sustainability – the current threshold is 250. In addition, a turnover threshold of at least €450 million is to apply, including for companies from third countries. Exemptions are planned for financial holding companies and listed subsidiaries in order to avoid double reporting within groups.
Reporting standards: simplification and focus on figures
Existing reporting standards are to be simplified and focused on quantitative information. Contrary to the Council's call to abolish sector-specific standards, the EP advocates making them voluntary in the future. The Commission is to develop non-binding, sector-specific guidelines for this purpose.
SME protection and digital aids
Information requests from large companies are to be linked to the Voluntary SME Standard. An EU portal with free templates and guidelines is planned.
EU Supply Chain Directive (CSDDD): Focus on large companies
In line with the Council's position, only companies with more than 5,000 employees and a minimum turnover of €1.5 billion will be covered by the directive in future. The current CSDDD provides for significantly lower thresholds: 1,000 employees and €450 million in turnover.
Due diligence obligations: Risk-based verification mechanism
The verification of business partners (Art. 8 CSDDD) is to be carried out in two stages:
- Generally available information is reviewed taking into account a risk-based approach (including geographical factors).
- If negative impacts within the meaning of the directive are suspected, an in-depth review is carried out.
There is no provision for differentiating between direct and indirect business partners, as proposed by the Commission and the Council.
Climate plans: Obligation to plan, not to implement
Companies are to develop plans to combat climate change (Art. 22 CSDDD), but are not obliged to implement them.
Liability: No EU-wide regulation
The report does not provide for EU-wide harmonized liability for breaches of duty (Art. 29 CSDDD). The liability rules of the country in which the damage occurred apply. Damages can be claimed in the respective EU member state.
Next steps
On October 20, the EP plenary may request that the committee's decision to enter into trilogue negotiations be revoked. If no such request is made or if the decision to enter into negotiations is approved, negotiations may begin at any time.
Assessment
The trilogue mandate is the result of intensive negotiations in the EP. The EP's proposals would place less of a burden on companies than was the case in the versions of the CSRD and CSDDD adopted before the last European elections. The task now is to conclude the trilogue negotiations quickly in order to create legal certainty and predictability for companies.
