The European Parliament adopts its position on the proposal to simplify legislation on sustainability reporting (CSRD) and due diligence requirements (CSDDD)
The proposal by the European Commission, included in the Omnibus package, is now entering its final stage.
On November 13, 2025, the Omnibus proposal to simplify legislation adopted by the European Commission in February 2025 entered the next stage in the legislative process with the approval by the plenary session of the European Parliament of its negotiating position.
Specifically, with respect to sustainability reporting by companies under Directive (EU) 2022/2464 (CSRD), the Parliament has proposed, among other matters, to limit reporting obligations to large companies with more than 1,750 employees and a net turnover above €450 million. It also proposes to further simplify reporting requirements to prevent double reporting and any overlap of obligations deriving from other legislative instruments, and to ensure interoperability with other international standards.
In this regard, the EFRAG is expected to publish the new reporting standards (ESRS) in November.
With respect to Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 May 2024 on corporate sustainability due diligence (CSDDD), some of the fundamental changes proposed by the European Parliament to the proposal tabled in February 2025 by the European Commission are: (i) to modify its scope to raise the threshold to companies with more than 5,000 employees and €1.5 billion net turnover; (ii) to increase the level of harmonization required of the laws of the Member States transposing the Directive; (iii) to adopt a risk-based approach to the due diligence process, in which companies identify negative impacts using the information that is already available, only requesting additional information from their smaller business partners in exceptional cases and as a last resort; and (iv) to remove the obligation to adopt a transition plan for climate change mitigation.
This approval gives the green light to trilogue negotiations among the three main European institutions: the European Parliament, the Council of the European Union and the European Commission. The process is expected to be completed in December 2025.