The European Union’s regulatory landscape for sustainability reporting has entered a new phase with the introduction of the EU Omnibus, a key simplification initiative under the broader Omnibus I package announced in February 2025.
This reform responds to growing concerns from business leaders across the EU about the administrative burden of the Corporate Sustainability Reporting Directive (CSRD) and the upcoming Corporate Sustainability Due Diligence Directive (CS3D).
In this article, we break down the core elements of the EU Omnibus, including the new compliance timelines, updated reporting thresholds, and what these changes mean for companies navigating the EU’s evolving ESG reporting regime.
Note: Although the Omnibus Directive has been adopted by the European Parliament, its implementation in France is still pending approval.
What is Omnibus Directive?
The EU Omnibus is a regulatory simplification initiative designed to:
- Ease reporting obligations for large companies
- Protect SMEs from indirect reporting pressures
- Delay implementation timelines, giving businesses more time to comply
It responds to calls from EU leaders to create a simpler, more business-friendly regulatory environment, without compromising sustainability objectives.
Who is now in scope for EU Omnibus?
For EU Companies, the following are under scope:
- Employee threshold rose from 250 to 1,000 employees
- Turnover threshold added: companies with over €50 million in net turnover or balance sheet total over €25 million are in scope
- Listed in the EU regulated markets
Listed SMEs that were previously included are now exempt from CSRD reporting.
Which non-EU companies are under the scope for EU Omnibus?
For non-EU Companies the following are under scope for reporting starting from 1st January 2027:
A company with 1000 employees or more, and meets one of the following criteria:
- More than €50 million in turnover
- More than €25 million in assets
For non-EU Companies the following are under scope for reporting starting from 1st January 2028:
A company with a net turnover of more than €450 million and meets one of the following criteria:
- At least one EU subsidiary meeting 2 of the following criteria:
- 250+ employees
- €50+ million in turnover
- or €25+ million in assets
- Or a branch in the EU with an annual net turnover exceeding €50 million
What about CS3D (Due Diligence Directive)?
- Higher threshold: now applies to companies with 5,000+ employees and €1.5B turnover
- Due diligence focus limited to direct partners (Tier 1) only
- Risk-based approach replaces full supply chain mapping
- Climate transition plans must be adopted but are now more flexible and postponed by 2 years
You can find more information about CS3D here.
EU CSRD Compliance Timeline (Original)
The implementation of the CSRD will take place over several years depending on company type:
Entity Type |
Reporting Begins |
Data Period Covered |
|---|---|---|
Large Companies under NFRD
|
FY 2024
|
Reports due in 2025
|
Large EU Companies newly covered by CSRD
|
FY 2025
|
Reports due in 2026
|
Listed SMEs
|
FY 2026
|
Reports due in 2027
|
Non-EU Companies
|
FY 2028
|
Reports due in 2029
|
EU Omnibus Compliance Timeline
Under the new Omnibus guidelines timelines for some companies have changed as follows:
Entity Type |
Reporting Begins |
Data Period Covered |
|---|---|---|
Large Companies
|
FY 2024*
|
Reports due in 2025
|
Large EU Companies newly covered by CSRD
|
FY 2027
|
Reports due in 2028
|
Listed SMEs
|
-
|
No longer in scope
|
Non-EU Companies
|
FY 2028
|
Reports due in 2029
|
*The dates for large companies hasn’t changed, however the criteria for a large company has changed. You can refer to them here.
What is the “Stop the Clock” Directive?
The “Stop the Clock” Directive under the CSRD Omnibus is an EU regulation that delays certain Corporate Sustainability Reporting (CSRD) and Due Diligence (CS3D) deadlines by up to two years. It gives companies more time to comply while the EU reviews and simplifies sustainability rules.
The CSRD Omnibus marks a pivotal recalibration of the EU’s sustainability reporting framework. By easing reporting requirements, increasing thresholds, and introducing a risk-based approach, the EU has signaled its willingness to support businesses while maintaining its long-term ESG ambitions.
For in-scope companies, especially those newly excluded or delayed, this is an opportunity to review internal ESG systems, refocus on material risks, and prepare strategically for the next wave of regulatory requirements.
Non-EU companies with significant EU operations must also stay alert, as reporting under CSRD and due diligence under CS3D remain on the horizon.
Ultimately, while the Omnibus offers more time and flexibility, it doesn’t change the trajectory: sustainability reporting is becoming the new normal in Europe. Early alignment will remain critical, not only to meet compliance deadlines, but also to satisfy investor expectations and strengthen market credibility in an ESG-conscious world.
You can read more about the requirements under CSRD here.