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| Update: 16. Oktober 2025
🕓 Reading time 8 minutes
1. What is the Omnibus Regulation?
A new set of rules with far-reaching consequences
The term “Omnibus Regulation” is used in the European Union to describe legal acts that amend or update several existing regulations or directives at the same time.
The European Commission is currently planning a major initiative for a further omnibus regulation to simplify ESG reporting requirements. This is intended to consolidate and simplify existing and future regulations and directives, particularly with regard to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
The focus is not only on sustainability, but also on reducing bureaucracy for companies.
Who is affected?
This mainly affects companies that fall under the CSRD (Corporate Sustainability Reporting Directive) and the planned CSDDD (Corporate Sustainability Due Diligence Directive). These include large companies and capital market-oriented SMEs, which are increasingly required to disclose their sustainability data. The EUDR (EU Deforestation Regulation) is also affected by the new Omnibus Regulation, which may have a direct impact on global supply chains.
When does the bus regulation come into force?
The omnibus proposal comprises several packages. On February 26, 2025, the draft of the first omnibus package was published, revealing the specific planned impact of the simplification initiative on sustainability reporting requirements. The planned changes are far-reaching and affect all companies that were previously subject to the existing regulation.
On April 3, 2025, the European Parliament approved the so-called “stop-the-clock proposal,” which entered into force on April 17, 2025, the day of its publication in the Official Journal. This postponed the sustainability reporting requirements for companies in the second wave (originally for financial years beginning on or after January 1, 2025) and the third wave (originally for financial years beginning on or after January 1, 2026) by two years in each case. The aim of this measure is to give companies more time to prepare for the new requirements and to ensure that they are not subject to reporting obligations at short notice that may be changed again at a later date.
The proposal that Threshold komplett auf Unternehmen mit mehr als 1.000 Mitarbeitern anzuheben, is not yet implemented. Dieser Punkt wird in der Zweiten Omnibus-Richtlinie (2025/81/KOM) behandel.
Am Montag, den 13.10.2025 hat der Rechtsausschuss des Europäischen Parlaments (JURI) seine finale Position hierzu beschlossen, mit der das Parlament in die Verhandlungen (Trilog) mit Rat und Kommission einsteigen wird. Künftig sollen demnach lediglich Unternehmen mit mehr als 1.000 Mitarbeitenden und einem Umsatz über 450 Mio. Euro betroffen sein. Das Parlament plant, in der Sitzungswoche vom 20. bis 23.10.2025 zuzustimmen und damit den Trilog einzuleiten.
Die Änderungen haben gute Chancen, weitgehend beizubehalten zu werden. Kritiker bemängeln, dass künftig zu wenige Unternehmen zur Offenlegung von Nachhaltigkeitsdaten verpflichtet wären, was die Markttransparenz drastisch einschränkt.
2. Which laws should the Omnibus Regulation amend and how?
The Omnibus Regulation aims to revise and simplify various existing European regulations on sustainability reporting. The planned changes particularly affect the CSRD, the CSDDD, the EU Taxonomy Regulation and other directives relating to corporate reporting and sustainability requirements.
Planned changes to the CSRD (Corporate Sustainability Reporting Directive)
1. Restriction of the user group
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- In future, reporting obligations will only apply to companies with more than 1,000 employees and mindestens 50 Mio. € Jahresumsatz oder 25 Mio. € Bilanzsumme (ggf sogar min 450 mio. € Umsatz)
- Regardless of the capital market orientation
- Around 80% of the companies originally affected would be eliminated
- Bringing the CSRD user group closer to the CSDDD
2. Stop-the-Clock: Postponement of the reporting obligation (voted on 3 April 2025)
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- Companies that would have been subject to reporting requirements from 2025 onwards will be granted a two-year deferral under the “stop the clock” proposal.
- First reporting therefore only in 2028 for the financial year 2027
- Capital market-oriented companies with more than 500 employees (“Wave 1”) are exempt
3. No additional sector-specific ESRS standards
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- Originally planned additional sector-specific ESRS standards are to be eliminated
- Existing ESRS standards should be further simplified if necessary
4. Changes in the exam
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The originally planned transition from “Limited Assurance” to “Reasonable Assurance” (more comprehensive audit with higher assurance) is to be scrapped in order to avoid rising audit costs.
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More flexible auditing standards: until 2026, only guidelines for auditing
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5. Reporting obligations for SMEs
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- Capital market-oriented SMEs are excluded from the CSRD user group.
- Large companies should not be allowed to require companies with fewer than 500 employees to provide additional sustainability information beyond the voluntary SME-specific VSME standards developed for SMEs – unless there are valid reasons that require additional reporting.
Planned changes to the EU Taxonomy Regulation
1. Restriction of the user group
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- Companies with fewer than 1,000 employees and less than €450 million in turnover: voluntary taxonomy reporting
- Companies with more than 1,000 employees but less than €450 million in revenue: Revenue and CapEx KPIs are mandatory, OpEx KPIs are optional
- Companies with more than 1,000 employees and more than €450 million in revenue: Obligation to disclose all taxonomy key figures; OpEx KPIs can only be omitted if taxonomy-eligible revenue is < 25% of total revenue
2. Simplification of reporting
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- Introduction of materiality thresholds: Activities accounting for less than 10% of the relevant financial indicators are to be considered immaterial; companies only have to assess economically significant activities.
- Public consultation on the revision of taxonomy reporting until 26 March 2025
Corporate Sustainability Due Diligence Directive (CSDDD)
1. Limitation of due diligence obligations to direct business partners
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- Obligation to analyze sustainability risks only for direct business partners (Tier 1 suppliers)
- Enhanced due diligence obligations for indirect business partners only in the event of plausible risks or negative reports (e.g., by the media/NGOs)
- Companies should nevertheless enforce their code of conduct throughout the entire value chain.
2. Time adjustments
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- Review of due diligence measures only every five years (instead of annually)
- Companies are no longer liable across Europe for breaches of due diligence obligations
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Postponement of the first application of the CSDDD by one year to 26 July 2028

3. Impact on the CSRD's carbon accounting obligation
The CO₂ accounting via Scope 1, 2, and 3 remains an essential component of sustainability reporting in accordance with the CSRD even with the Omnibus Regulation. However, companies are likely to benefit from extended deadlines, a reduced level of detail in the value chain and a possible simplification of reporting.
Extension of deadline
The general postponement of reporting requirements for companies in the second and third waves by two years means that many companies will not have to report for the first time until 2028 for the 2027 financial year. This gives them a little more time to prepare for CO₂ reporting.
Scope 3 emissions
While companies continue to collect Scope 1 (direct emissions) and Scope 2 (indirect emissions from energy consumption) based on detailed data, it could become easier to break down Scope 3 emissions from the supply chain. However, Scope 3 emissions will probably still have to be reported.
If the detailed verification requirement for more distant suppliers outside Tier 1 is waived, it could become easier for companies to calculate Scope 3 emissions using average values or industry-specific emission factors from databases instead of obtaining data individually from each supplier. Companies could therefore continue to rely on estimates, modeling, or industry-specific average values in the future, as is currently still the case in accounting practice.
No binding implementation of climate plans
Although the CSDDD continues to require the creation of a climate plan, its actual implementation is no longer mandatory. This could reduce the pressure on companies to demonstrate CO₂ reduction measures immediately.
Simplification of data reporting
The Omnibus Initiative continues to focus on the harmonization of reporting requirements between different regulations (e.g., CSRD, EU Taxonomy, EUDR). A possible standardization of the data structure and the development of central digital platforms for CO₂ data reporting could make reporting requirements more efficient in the long term.
VSME & Omnibus simplifications
Current simplifications and carbon accounting for CSRD or supply chain inquiries
19. Nov., 10.30-11.15 Uhr
4. Conclusion: What companies should know now
The Omnibus Regulation is intended to make things easier for companies by harmonizing reporting obligations and sustainability reporting requirements. However, the pending agreement is delaying the hoped-for progress.
Three key points that companies should consider now:
1. Adaptation to harmonized standards
The Omnibus Regulation is expected to consolidate existing CSRD and CSDDD rules. Companies should prepare for changes in the data formats and reporting systems that will need to be reported.
2. Consider unchanged core requirements
Despite possible simplifications, key sustainability requirements such as CO₂ accounting will remain in place. Companies should continue to focus intensively on their sustainability reporting priorities and ensure that they collect the relevant data at an early stage.
3. Track regular updates
Developments at the European level remain dynamic. Companies should keep an eye on updates and stay informed about upcoming adjustments so they can respond early.

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Sources
Rödl & Partner – Omnibus-Initiative in Bewegung: Wie weit ist die EU mit der Kurskorrektur?
https://www.roedl.de/themen/esg-news/2025-3/omnibus-initiative-bewegung-kurskorrektur Accessed on August 7, 2025
CMS – Brüsseler Kurskorrektur: EU-Kommission plant mit dem „Omnibus“ reduzierte Nachhaltigkeitspflichten für Unternehmen – Teil I: CSRD und Taxonomie
https://www.cmshs-bloggt.de/rechtsthemen/sustainability/sustainability-corporate-governance-risk-compliance/bruesseler-kurskorrektur-eu-kommission-plant-mit-dem-omnibus-reduzierte-nachhaltigkeitspflichten-fuer-unternehmen-teil-i-csrd-und-taxonomie/ Accessed on August 7, 2025
Rödl & Partner – Sustainability Reporting: EU Commission publishes Omnibus draft to simplify reporting obligations
https://www.roedl.de/themen/esg-news/breaking-news/nachhaltigkeitsberichterstattung-eu-kommission-veroeffentlichung-omnibus-entwurf-berichtspflichten-vereinfachung Accessed on February 27, 2025
KPMG Law – First Omnibus Regulation aims to simplify the obligations of the CSDDD, CSRD and EU taxonomy loosen
https://kpmg-law.de/erste-omnibus-verordnung-soll-die-pflichten-der-csddd-csrd-und-eu-taxonomie-lockern/ Accessed on February 27, 2025
IHK Frankfurt am Main – “Omnibus” Regulation: EU aims to consolidate ESG reporting obligations
https://www.frankfurt-main.ihk.de/hauptnavigation/wirtschaftspolitik/csr-und-nachhaltigkeit/csr-und-nachhaltigkeit-aktuell/-omnibus-verordnung-eu-will-esg-berichtspflichten-konsolidieren-6441152 Accessed on February 4, 2025
Haufe – “Omnibus” Regulation: EU wants to consolidate reporting obligations
https://www.haufe.de/sustainability/strategie/eu-kommission-will-berichtspflichten-konsolidieren_575772_636968.html Accessed on February 4, 2025
KPMG – Omnibus Initiative to simplify CSRD, CSDDD and the EU taxonomy
https://kpmg.com/de/de/home/themen/2025/01/eu-kommission-plant-omnibus-initiative-crsd-csddd-eu-taxonomie.htmlhttps://www.haufe.de/sustainability/strategie/eu-kommission-will-berichtspflichten-konsolidieren_575772_636968.html Accessed on February 4, 2025
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