On 26 February 2025, the European Commission presented the Omnibus I Package, a proposal to simplify - in all EU member states - the legislation in force in the sustainability and investment sectors, specifically the reporting directive (Corporate Sustainability Reporting Directive, CSRD) and the corporate sustainability due diligence directive (CSDDD).
After a "Stop-the-clock" announced in April by the EU Council which contemplated the postponement of entry into force and the remodulation of the brackets for different types and sizes of companies, yesterday afternoon the European Parliament met in plenary and definitively approved the package.
Sustainability reporting: higher thresholds and fewer constraints for companies
According to the newly updated EU rules, therefore, social and environmental reporting - i.e. the obligation for companies to make public data on their impact on the environment and on people - will become mandatory only for:
• EU companies with more than 1,000 employees
• with annual net turnover exceeding 450 million euros
Companies with fewer than 1,000 employees will no longer be required to provide the companies with which they collaborate with additional information compared to that required by the rules on voluntary reporting.
The obligation for large companies to draw up and implement Climate Transition Plans (CTP) necessary to align their emissions with European climate objectives and those of the Paris Agreement has also been eliminated. Article 22 of the CSDDD, which provided for the obligation to implement CTPs, has been completely eliminated and companies will have to continue to report their plans through the CSRD, but will no longer have the obligation to implement them.
Due diligence: obligations only for companies over 5,000 employees
On the Corporate Sustainability Due Diligence front - which requires companies to prevent, mitigate or minimize the impacts on human rights and the environment of their own business and that of their supply chain - the review further narrows the number of companies involved. The new requirements will only apply to:
• companies with over 5,000 employees
• with annual net turnover exceeding 1.5 billion euros.
A perimeter which, according to estimates, will cut out over 85% of companies that would otherwise fall within the CSRD. The Due Diligence Directive will enter into force on 26 July 2029 for all affected businesses.
