CSRD and CSDDD: crunch time for Omnibus negotiations

The European Parliament has entered the final stretch of negotiations on the sustainability Omnibus, which seeks to simplify and recalibrate the EU’s Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

This legislative package is part of a broader drive to simplify EU rules and reduce burdens for business.

Parliament has now resumed negotiations on the file after the summer recess.

Since September, lawmakers have held three negotiating sessions to hammer out a compromise position, with two more scheduled before mid-October.

Sources describe the discussions as ‘tense’ and ‘intense’, reflecting deep divisions between political groups.

Scope remains an issue

One of the most contentious issues remains the scope of the rules.

Lead negotiator Jörgen Warborn (EPP, Sweden) has suggested separating the thresholds for CSRD and CSDDD.

Earlier this year, he floated the idea of applying both directives only to companies with more than 3,000 employees, limiting the scope to around 1,700 companies – far fewer than under the Commission’s proposal, which would have phased in CSRD for roughly 50,000 companies.

On the CSDDD, provisions on civil liability and climate transition plans are major sticking points.

The European People’s Party (EPP) has pressed other groups to prioritise one over the other, but progressive groups remain keen to keep both in the final text.

Next steps

Parliament’s agreement in October will be its official negotiating mandate for trilogues with the Council.

For businesses, this is the point where scope and obligations start to crystallise.

A narrower scope would exempt thousands of companies from detailed reporting and due diligence duties, while keeping broader requirements would mean more extensive compliance efforts across sectors.

The Legal Affairs Committee (JURI) is scheduled to vote on 13 October, followed by a plenary vote the week of 20 October.

If Parliament finalises its position, trilogues with the Council can begin before year-end.

However, timing remains tight, and further amendments are still possible up until the plenary stage.

Landbell Group’s sustainability report

For its forthcoming sustainability report, Landbell Group has decided to adopt the Voluntary Standard for non-listed micro-, small- and medium-sized undertakings (VSME).

Aligning with the VSME, which is published by the European Financial Reporting Advisory Group (EFRAG), helps the Group and its customers prepare for future requirements given the uncertainty around the CSRD and the European Sustainability Reporting Standards (ESRS).

Find out more about Landbell Group’s approach to sustainability, policies, commitments and recognitions here.

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