Omnibus I (EU Sustainability Simplification Package)

The EU Omnibus I package refers to the European Commission’s proposals published February 26, 2025 (COM(2025) 801 and COM(2025) 812) and the subsequent December 2025 provisional agreement between the European Parliament and Council to significantly simplify EU sustainability reporting and due diligence requirements. Key changes under the provisional agreement: CSRD scope reduced to companies with >1,000 employees and net turnover >€450M (reducing coverage by approximately 80%); Wave 2 and Wave 3 CSRD delayed by two years (Stop-the-Clock); CSDDD application delayed one year; ESRS simplified (revised standards expected Q2 2026); EU Taxonomy reporting simplified. On February 24, 2026, the EU Council officially approved the Omnibus I directive.

European Commission Omnibus I proposals COM(2025) 801 and COM(2025) 812 (February 26, 2025); Stop-the-Clock Directive (EU) 2025/794 (in force April 17, 2025); Omnibus I provisional agreement (December 2025); EU Council formal approval (February 24, 2026).

Omnibus I is the most significant change to EU sustainability reporting obligations since the CSRD was adopted in 2022. Companies previously in Wave 2 or Wave 3 no longer need to begin reporting preparation for 2025 FY (now deferred to 2027 FY at earliest). Companies with <1,000 employees will likely fall out of scope entirely under revised CSRD. Wave 1 companies continue reporting under current ESRS with Quick-Fix relief. All companies should monitor the formal adoption of simplified ESRS (expected Q2 2026).