What has now been decided – and what this means for sustainability reporting
With the Omnibus I package, the fundamental realignment of European sustainability regulation has been politically decided. Following the conclusion of the trilogue negotiations, both the Legal Affairs Committee of the European Parliament and the Committee of Permanent Representatives in the Council have approved the compromise text. The plenary of the European Parliament adopted the text on December 16, 2025. After formal adoption by the Council, the amending directive will enter into force 20 days after publication in the Official Journal of the EU, which is scheduled for March 2026, .
In terms of content, Omnibus I confirms what had already emerged early in the political process: the CSRD will be significantly scaled back. In the future, only companies or parent companies with an average of more than 1,000 employees and more than €450 million in turnover will be subject to the mandatory CSRD reporting obligation. According to estimates, this will mean that around 80% of the originally expected companies subject to reporting will fall out of the scope.
This restriction is flanked by further simplifications. The reporting obligations are to be more strongly focused on essential, quantitative information, and industry-specific standards will no longer be developed. At the same time, the text provides for a review clause, according to which the scope will be reviewed again from 2031 and, if necessary, expanded.
Why sustainability reporting remains relevant despite Omnibus I
Even if Omnibus I eliminates the formal reporting obligation for many companies, sustainability reporting does not lose its importance. Banks, investors, customers and business partners continue to rely on ESG information to assess risks, manage business relationships and make financing decisions. These expectations apply increasingly independently of regulatory thresholds and thus also affect companies that will no longer be subject to the CSRD in the future.
This fundamentally shifts the character of reporting: away from mere fulfillment of obligations, towards a voluntary but strategically relevant management and communication tool. Companies that have reliable data, clear governance structures and comprehensible narratives can use transparency in a targeted manner towards investors, customers and other stakeholders.
Especially in an environment of less regulation, sustainability reporting becomes a conscious entrepreneurial decision. Those who create transparency even without a reporting obligation signal management ability, future orientation and credibility, and thus position themselves sustainably in the market.
