Omnibus 1: European Parliament and Council reach agreement on corporate sustainability rules

On 9 December, negotiators from the European Parliament and Council reached a political agreement on the European Commission’s Omnibus I package to streamline corporate sustainability rules.

The deal covers key amendments to both the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD).

The agreement removes the obligation for companies to draw up climate transition plans.

On CSDDD, the co-legislators confirmed that due diligence obligations will only apply to very large companies with more than 5,000 employees and a net turnover of €1.5 billion. This narrows the scope considerably compared to the current rules, which apply from 1,000 employees.

On CSRD, negotiators agreed to limit the mandatory reporting obligations to companies with at least 1,000 employees and an annual turnover of €450 million. The Parliament had previously supported a higher threshold of 1,750 employees.

The agreement was presented to Member State ambassadors on 10 December and is scheduled to be put to a vote by the European Parliament’s committee and plenary on 11 and 16 December.

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