Omnibus explained: key changes to CSRD

Accountancy Europe’s has issued a series of three factual analysis of the European Commission’s (EC) recent Omnibus proposal focusing on the Corporate Sustainability Reporting Directive (CSRD), sustainability reporting standards, and Corporate Sustainability Due Diligence Directive (CSDDD). These papers aim to give stakeholders an initial overview of the key proposed changes expected to reshape sustainability reporting and due diligence practices across Europe. Read also our statement on the EC Omnibus sustainability proposal.

This paper will focus on the proposed changes for CSRD.

For more information about the CSRD requirements check out our FAQs: All you need to know about the Corporate Sustainability Reporting Directive (2022)

Omnibus background

The EC launched the Omnibus sustainability rules simplification package on 26 February 2025. This is the first step of an ambitious simplification agenda to enhance European economic competitiveness. It aims to reduce administrative and reporting burdens on companies and unlocking businesses’ investment potential.

The new simplification agenda set bold targets, including a 25% cut in reporting burdens for companies and 35% for SMEs. The EC expects this effort to boost European companies’ competitiveness while maintaining climate and decarbonisation goals of the Green Deal. The Omnibus package proposes amendments to several sustainability laws. These include the CSRD, the CSDDD, the EU Taxonomy for sustainable activities, and the Carbon Border Adjustment Mechanism (CBAM).

Key CSRD changes

The Omnibus proposes key change that include the following:

• postpone the application of reporting requirements for ‘wave 2’ and ‘wave 3’ companies by two years
• reduce the CSRD scope to large undertakings and parent undertakings of a large group with 1000 employees on average and either exceeding € 25 million total on a balance sheet or € 50 million turnover  
• change thresholds applicable to a third country to €450m million net turnover generated in the EU and having a large subsidiary or a branch generating € 50 million turnover
• modify sustainability reporting standards – see our factsheet on Omnibus proposed changes to sustainability reporting standards  
• propose a more flexible way for certain undertakings to report on EU Taxonomy
• delete the obligation to adopt a reasonable assurance standard and the possibility of moving to a reasonable assurance requirement
• include EC’s intention to issue targeted assurance guidelines by 2026

Way forward

It is important to note that the EC proposals are not final. The EC will submit the proposal to the two co-legislators – the European Parliament (EP) and the Council of the European Union – for their review, input and adoption. These institutions hold the power to amend the currently proposed Omnibus sustainability package.