The EU Omnibus explained: what changed for the CSRD, due diligence and the EU taxonomy

What is the EU Omnibus?

Omnibus is the European Commission’s name for packages that change several laws at once to cut reporting and administrative burden. The first, Omnibus I, presented on 26 February 2025, rewrote the rules on sustainability reporting (CSRD), corporate sustainability due diligence (CSDDD), the EU taxonomy and the carbon border adjustment mechanism (CBAM). The Commission has since proposed further omnibus packages on other topics, such as digital and environmental rules.

Omnibus I was adopted in two steps: a stop-the-clock directive that postponed the deadlines, and Directive (EU) 2026/470, adopted on 24 February 2026, which changed the content.

Step one: stop the clock

Directive (EU) 2025/794, adopted on 14 April 2025, postponed sustainability reporting by two years for the companies that were due to start with financial years 2025 and 2026, and the start of due diligence obligations by one year. It gave lawmakers time to agree on the content before those companies had to begin.

Who still has to report under the CSRD?

Mandatory sustainability reporting now applies only to EU companies with more than 1,000 employees and more than €450 million net turnover, and to non-EU groups with more than €450 million turnover in the EU in two consecutive years. Listed small and medium-sized companies are no longer in scope. The new scope applies to financial years starting on or after 1 January 2027, and member states must bring the changes into national law by 19 March 2027.

Companies that already reported for 2024 but fall below the new thresholds can be exempted by their member state for financial years 2025 and 2026.

Lighter rules for those still in scope

Companies that remain in scope report under a simplified version of the European Sustainability Reporting Standards (ESRS), which the Commission adopted in July 2026 with far fewer required data points. Sector-specific standards were dropped, and assurance stays at the limited level instead of moving to reasonable assurance. Taxonomy reporting is limited to the same large companies, while others may report voluntarily.

The value chain cap

For everyone else, the most important change is the value chain cap. A company that reports under the CSRD may not require more sustainability information from a company in its value chain with up to 1,000 employees than the EU voluntary standard (VSME) covers, and the smaller company may refuse requests that go beyond it. The Commission adopted the delegated act that sets this out in July 2026, and the cap applies from financial year 2027. It does not cover banks, which follow their own supervisory rules.

A smaller due diligence directive, later

The due diligence directive now applies only to EU companies with more than 5,000 employees and more than €1.5 billion turnover, and to non-EU companies with more than €1.5 billion turnover in the EU, from 26 July 2029. The duty to adopt a climate transition plan was removed, civil liability is left to national law, and fines are capped at 3% of worldwide turnover. Requests to business partners with fewer than 5,000 employees are limited to what cannot reasonably be obtained otherwise.

CBAM and the taxonomy

The same package exempted importers that bring in no more than 50 tonnes of CBAM goods a year from the carbon border adjustment mechanism. A separate act simplified the EU taxonomy templates from 2026 and lets companies leave out activities that make up less than 10% of their turnover, capital expenditure or operating expenditure.

What it means if you are not in scope

For most companies, the Omnibus removed a legal duty they never had, but not the questions. Customers still need figures for their own reports, banks still assess ESG risks in their loans, and tenders still ask for footprints. The difference is that a reporting customer may not ask for more than the voluntary standard covers, so one voluntary report, prepared once and kept up to date, answers most requests.

Doing it in Greener Ahead

Sustainability reporting in Greener Ahead prepares a report under the EU voluntary standard (VSME), the reference point for the value chain cap, with the evidence behind every answer and a designed report you can share with customers and banks. It costs €995 per year with unlimited users, and you can try it free for 14 days without a card. Check the pricing page for current details.

Before and after the Omnibus

The main changes at a glance.

Key dates

Adoption, entry into force and application are different moments.

Questions to ask a customer that sends a questionnaire

The answers tell you whether the value chain cap applies.

• Do you report under the CSRD yourself?
• Is this request for that report, or for another purpose?
• Which of your questions go beyond the voluntary standard?
• Would a report under the voluntary standard answer it?