EU Parliament Adopts Position on Omnibus I – Major Shift in Sustainability Rules
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On 13 November, the European Parliament voted to adopt its negotiating position on the Omnibus I proposal, a legislative package aimed at simplifying EU sustainability rules. This marks a significant rollback of the scope and obligations under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
Key Changes in Parliament’s Position:
- CSRD Scope: Limited to companies with >1,750 employees and €450M net turnover, excluding roughly 90% of firms currently in scope.
- CSDDD Scope: Applies only to companies with >5,000 employees and €1.5B turnover.
- Climate Transition Plans: Removed from CSDDD obligations.
- Civil Liability: No EU-wide civil liability under CSDDD.
- Review Clause: Deleted for CSRD scope expansion.
Political Context:
The vote passed with 382 in favour, 249 against, 13 abstentions, after intense negotiations. The centre-right EPP aligned with right-wing and far-right groups to push through deeper deregulation, signalling a major shift in the EU’s sustainability agenda.
What’s Next?
Trilogue negotiations between Parliament, Council, and Commission started on 18 November 2025, aiming for a final text by year-end.
⚖️ Council vs Parliament:
The Council’s position (adopted 23 June 2025) is less restrictive:
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- CSRD: 1,000 employees & €450M turnover
- CSDDD: 5,000 employees & €1.5B turnover
- Includes a review clause and climate transition plans, albeit with deferred implementation.
Why It Matters
The Parliament’s stance represents the most aggressive narrowing of sustainability obligations compared to both the Council and Commission proposals. Critics warn this could weaken corporate accountability and undermine the EU’s global leadership on sustainability, while supporters argue it will boost competitiveness and reduce compliance burdens.
