EU Omnibus I finalised: What are the implications? 

The European Union has published the final legally binding text of the Omnibus I Directive in the Official Journal, marking the end of a year-long process that began with the Commission’s proposal on 26 February 2025.   

This directive amends the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), introducing simplifications and delays that affect thousands of companies across Europe. 

Key changes from Omnibus I 

The Omnibus I package responds to calls for simplification amid growing concerns over administrative burdens and transposition delays across Member States. 

Scope and applicability 

The directive raises CSRD scope thresholds significantly, narrowing the number of companies required to report 

EU undertakings and groups 

• Must now meet two criteria: on their balance sheet dates, exceed net turnover of 450 million EUR and average number of 1000 employees.  

• Prepare sustainability statements in accordance with the revised ESRS, expected to be published in September 2026. 

• Publish sustainability statement for the year 2027 in the year 2028. 

• Listed SMEs (previously “wave 3”) are now completely out of scope, removing their obligation to report for financial years starting on or after 1 January 2026. 

Non-EU parent companies 

• Non-EU companies with EU subsidiaries or branches must generate 450 million EUR net turnover in the EU for the last 2 consecutive years while having at least one EU subsidiary or branch generate more than 200 million EUR on its own.  

• Prepare sustainability statements in accordance with the sustainability reporting standards for third-country undertakings called Non-EU ESRS (NESRS), which are currently under development and expected to be published in 2027. 

• The EU subsidiaries or branches of the third-country undertakings required to report under the CSRD must publish their sustainability statement for FY 2028 in FY 2029. 

Other changes

Value chain reporting 

• Protections are introduced for smaller undertakings in the value chain (fewer than 1,000 employees), allowing them to decline requests for excessive information. 

• Reporting undertakings can rely on self-declarations from value chain partners and use estimates if necessary. 

Revised European Sustainability Standards (ESRS) 

• In order to reduce the reporting burden for companies, in November 2025, EFRAG released the draft version of the simplified ESRS which is expected to be formally adopted by the Commission by September 2026. The proposal removes over 60% of datapoints, simplifies double materiality assessments, allows estimates for value chain data, clarifies requirements to improve ISSB interoperability, and introduces very limited new datapoints to reduce reporting burden. 

Voluntary reporting standards 

• In order to facilitate voluntary reporting of sustainability information for out-of-scope companies, the Commission will develop sustainability reporting standards for voluntary use by 19 July 2026. 

Assurance and verification of sustainability data 

• Assurance firms should only need to designate at least one key sustainability partner approved as a statutory auditor in the member state concerned. 

• The deadline for adopting harmonized assurance standards for the verification of sustainability information is postponed to July 2027 to address concerns and ensure flexibility. 

Group reporting flexibility 

• Financial holding companies can choose whether to report consolidated sustainability data or not, especially when their group consists of independent, non-interconnected subsidiaries. 

• In cases of acquisitions, mergers, or divestments during a financial year, the undertaking has the provision to exclude sustainability information related to these changes in reporting year’s consolidated management report. 

EU Taxonomy reporting 

The thresholds and timelines for EU Taxonomy reporting also align with the ones for CSRD, which means in-scope (>450 million EUR turnover; and >1000 FTEs) undertakings need to disclose EU taxonomy disclosures for FY 2027 in FY 2028. The latest delegated act published for EU Taxonomy introduces a 10% materiality threshold for all KPIs (turnover, CapEx, and OpEx); OpEx reporting optional if the KPI is immaterial to business model; templates cut 64-89% data points; and DNSH criteria is streamlined. 

Implications for ESG reporting companies 

Still In scope: Use the delay strategically 

The revised timeline is not a pause button – it’s a chance to build robust foundations.  

• Assess scope immediately: Run a quick check against revised thresholds (employees, turnover); for non-EU parent companies, check reporting timelines (FY 2027 or FY 2028) as the threshold is only for turnover and not employees; if borderline, plan for exemptions or opt-ins to stay competitive in tenders and ESG ratings such as EcoVadis / CDP.  

• Build data foundations: Initiate, update, and advance double materiality assessments, develop data collection for scope 1-3 emissions, and conduct ESRS gap analysis now. While the revised ESRS standards are expected to publish in September 2026, preparations should already start for the foundational elements which are expected to stay intact. Early readiness can cut 2028 reporting costs significantly. 

• Strategic integration: Use 2026 transition for decarbonisation roadmaps, climate risk assessments, EU Taxonomy alignment, and stakeholder engagement—position CSRD as business advantage, not compliance burden. 

Expect supply chain requests to intensify as in-scope partners seek ESRS-aligned data.  

Out of scope: Commercial pressures persist 

Narrowed thresholds exempt many SMEs and non-listed firms, but market forces endure.  

• Customers, investors, and lenders still demand ESG data for their own CSRD/CSDDD compliance.  

• Voluntary frameworks like the VSME standard or GRI offer a lightweight, flexible structure for sustainability reporting which can further enhance ESG rating scores for Ecovadis, CDP, etc., and meet stakeholder expectations.  

• A voluntary double materiality assessment helps pinpoint key topics, forms the basis for a robust sustainability strategy, and allows directing resources efficiently without the full regulatory requirements. 

Non-reporters risk losing contracts or partnerships; proactive transparency builds resilience.  

Watch our session going over the implications of the new Omnibus and stay ahead of the reporting landscape. 

How Nexio Projects can help you navigate CSRD 

For companies still in scope, the revised timeline is not permission to slow down. It is an opportunity to get foundations right. In 2026, complete your double materiality assessment and ESRS gap analysis. From there, build systems ready for FY2027 reporting. Companies treating this as mere compliance struggle; those integrating it strategically thrive.  

For those now out of scope, customers and investors still demand ESG data. Supply chain partners request disclosures. Regulatory pressure may ease, but commercial imperatives have not. As voluntary frameworks like VSME or GRI offer structure without full burden, you should start with a double materiality assessment to pinpoint what matters.  

Nexio Projects supports your ESG reporting end-to-end, including support with your full CSRD journey. As a Netherlands-based sustainability consultancy named among Verdantix’s top 10 boutique ESG firms, we have delivered 1,000+ projects across 25 sectors and 20 countries.   

Our CSRD and reporting services include: 

• Double materiality assessments and boundary setting. 

• ESRS gap analyses and sustainability strategy alignment. 

• Data systems, XBRL tagging, and stakeholder engagement. 

• Drafting compliant reports with limited/reasonable assurance preparation. 

• Conducting your climate risk assessment aligned with the CSRD 

• Supporting with your EU taxonomy  

• Assessing your carbon footprint across scopes 1-3, as required by the CSRD 

• Creating a full-journey decarbonisation roadmap for next steps 

Even non-EU firms or supply chain SMEs benefit from our value chain expertise, ensuring you meet partner requests seamlessly. Visit our CSRD solutions page to learn more and get started.  

The Omnibus process may be closed, but your sustainability journey is just accelerating. Let us help you turn obligations into opportunities. 

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