What "Omnibus" refers to
In February 2025, the European Commission published a proposed "Omnibus" simplification package aimed at reducing the sustainability reporting and due diligence burden that had built up across CSRD, the EU Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD). The name reflects that it bundles changes across multiple pieces of legislation into one process.
The timeline so far
| Date | What happened |
|---|---|
| February 2025 | European Commission publishes proposed Omnibus simplification package |
| April 2025 | "Stop-the-Clock" directive enters into force, postponing reporting for later-wave companies |
| July 2025 | EFRAG publishes revised, simplified ESRS exposure drafts for consultation |
| November 2025 | "Quick-fix" delegated act enters into force, limiting new disclosures for companies that already reported |
| December 2025 | European Parliament and Council reach provisional political agreement on Omnibus I |
| February–March 2026 | Directive (EU) 2026/470 published and enters into force, formalising the narrower scope |
| 3 July 2026 | European Commission finalises the delegated act adopting revised, simplified ESRS ("ESRS (2026)"), plus a separate Voluntary Sustainability Reporting Standard |
What actually changed for scope
The most significant practical change: CSRD's scope threshold rose sharply. Under the agreed compromise, mandatory CSRD reporting broadly applies to companies with at least 1,000 employees and €450 million in turnover — well above the original roughly 250 employee threshold. Listed SMEs and financial holding companies were removed from scope entirely. For non-EU companies, the relevant threshold is generating at least €450 million in EU revenue. See our who must report guide for the full detail.
What changed in the standards themselves: ESRS (2026)
Separately from scope, the content of the standards was substantially simplified. ESRS (2026), finalised 3 July 2026, cuts the number of mandatory datapoints by roughly 61% compared to the original 2023 standards, shortens and clarifies the standards' text, and adds new flexibility mechanisms (reliefs and phase-ins). It applies to financial years beginning on or after 1 January 2027, with early adoption permitted for financial year 2026 once the delegated act is in force.
What this means if you already reported
Companies that already reported under CSRD for financial year 2024 (so-called "Wave 1" companies) continue reporting, but the "quick-fix" amendment means they don't have to add new disclosures arising from the simplified ESRS for financial years 2025 and 2026 — effectively a compliance breathing room while the standards themselves were being finalised.
What the Omnibus does not resolve: digital tagging
Notably, none of the Omnibus agreements have resolved the digital tagging side. The XBRL/iXBRL tagging mandate for ESRS statements still awaits its own Regulatory Technical Standard from ESMA — and because ESRS (2026) changed the underlying standards so substantially, EFRAG's original taxonomy (built for the 2023 standards) no longer matches them. EFRAG's 2026 work programme includes building an updated ESRS XBRL taxonomy to reflect ESRS (2026), with consultation expected around mid-2026 and completion targeted for December 2026. See our ESRS XBRL guide for the full detail on where tagging itself stands. Don't assume the Omnibus has settled the tagging question just because it has settled (mostly) the scope and content questions — these are three different regulatory tracks moving at different speeds.
What we're watching
Member states have until March 19, 2027 to transpose the CSRD provisions of Directive (EU) 2026/470 into national law. Separately, EFRAG's public consultation on the updated ESRS XBRL taxonomy is expected to open around mid-2026, with the revised taxonomy targeted for completion by December 2026. We'll keep this page updated as both processes progress.
Frequently Asked Questions
Does the Omnibus remove CSRD entirely?
No — it narrows the scope significantly rather than eliminating the directive. Companies above the new, higher thresholds (roughly 1,000 employees and €450 million turnover) remain in scope.
Has the ESRS XBRL tagging mandate been confirmed or delayed by the Omnibus?
Neither, precisely — the tagging mandate was already pending its own Regulatory Technical Standard before the Omnibus process began, and that RTS still hasn't been finalised. Separately, EFRAG is now rebuilding the taxonomy itself to match the revised ESRS (2026) standards, targeting completion by December 2026.
When do member states have to apply the new, narrower CSRD rules?
Directive (EU) 2026/470 entered into force on March 19, 2026, with member states required to transpose its CSRD provisions into national law by March 19, 2027.