EU sustainability Omnibus I finally adopted by the council – what this means for CSRD & CSDDD

The Council of the European Union granted final approval to the Omnibus I package on February 24 during the General Affairs Council meeting, endorsing the trilogue compromise reached in December — the penultimate formal step in the legislative process. This confirms that the amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) will be implemented into EU law and were officially published today in the Official Journal of the European Union as the final step.

What happens next?

Following today’s publication in the Official Journal, the new legislative text will enter into force 20 days later. Member States will now have the following deadlines to transpose the amendments into national law:

• CSRD: Amendments must be implemented within 12 months.
• CSDDD: Amendments must be transposed into national law by 26 July 2028 at the latest.

What is behind Omnibus I?

The Omnibus I package in the field of sustainability introduces targeted amendments to two key EU sustainability instruments:

CSRD – sustainability reporting

Key thresholds and amendments:

• Applicable to EU companies with more than 1,000 employees and more than €450 million in turnover (Wave 1 already subject to reporting requirements, Wave 2 starting from the 2027 financial year).
• Non-EU companies will be subject to reporting requirements from the 2028 financial year if they generate more than €450 million in turnover within the EU and have either an EU subsidiary or an EU branch with more than €200 million in turnover.
• Companies outside the scope of application may voluntarily report in accordance with the VSME standard in the future.
• Member States may exempt first-wave companies below the thresholds for the years 2025 and 2026. The current German CSRD draft legislation provides for this. However, the NFRD still applies in Germany as the predecessor regulation.
• Climate Transition Plans remain part of the CSRD.

CSDDD – due diligence obligations in supply chains

Key thresholds and amendments:

• Applicable to companies with more than 5,000 employees and more than €1.5 billion in net turnover.
• Requirements for risk assessment and due diligence processes will be designed to be more practical and risk-based.
• No EU-wide harmonized liability regime; liability remains subject to national law.
• The maximum penalty will be reduced from 5% to 3% of turnover.
• Climate Transition Plans will no longer be part of the CSDDD.
• Introduction of a review clause in 2029 to reassess the thresholds.

What does this mean for companies?

Even though Omnibus I provides for regulatory simplifications, the expectations of investors, banks, and business partners remain in place. Sustainability information will continue to be actively requested, for example through sustainability ratings and ISO certifications — regardless of the formal scope of individual directives.

Environmental and social risks will also continue to impact supply chains, financing, and business relationships. With the upcoming transposition into national law, companies should therefore review their structures and data processes at an early stage and adjust them where necessary.

Conclusion

With the final approval of Omnibus I, another key legislative milestone has been reached. The process toward clearer and more practical sustainability requirements has entered a new phase. Companies should use this period to refine their strategies not only from a regulatory perspective but also in terms of substance, and to embed sustainability as an integral part of corporate management.

How Tanso supports

Tanso supports companies in structuring and future-proofing their sustainability management - from the strategic interpretation of regulatory requirements to operational implementation. At the core is an integrated ESG data management approach that creates transparency across processes, KPIs, and responsibilities, and can be leveraged as a strategic advantage for ESG ratings and financial incentives from banks and insurers.

With the Tanso software, CCF, PCF, and social KPIs can be consistently captured and aligned with stakeholder requirements. In the context of the Sustainability Omnibus, Tanso also enables flexible multi-reporting across various ESG standards - including ESRS, EcoVadis, SAQ 5, GRI, CDP, and VSME.