Omnibus Updates

Introduction

The Omnibus Regulation introduced by the European Commission on 26 February 2025, is a legislative package designed to amend several key components of the European Green Deal. It targets three major sustainability frameworks: These are the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the Taxonomy Regulation. The overarching goal is to reduce the reporting burdens, especially for small and mid-sized companies, and increase efficiency and competitiveness in sustainability reporting, in response to a more growth-oriented regulatory environment in the EU.

Current State

In a surprising move on 22 October 2025, the European Parliament rejected the mandate to take the proposed Omnibus Regulation directly into trilogue negotiations. This decision delays the legislative process and sends the controversial sustainability reform package back to the plenary session scheduled for 11–13 November, where it will face a full vote and potential amendments. The rejection highlights growing political tensions around the future of EU sustainability legislation and raises critical questions about the direction of the European Green Deal.

On 22 October, the European Parliament voted against giving the green light to move the Omnibus compromise straight into trilogue negotiations. This decision has added a layer of uncertainty to the legislative process. Instead of fast-tracking the proposal, it now heads back to the plenary session in mid-November, where it will be debated and voted on in full. A new deadline for amendments will be set, which means parts of the compromise could be reopened, potentially reshaping the proposal. But this also risks delaying negotiations and unravelling sensitive agreements that had already been reached.

Where we are at now

Timeline for Transposition

Member States must transpose the Stop-the-Clock Directive into national law by 31 December 2025, ensuring legal certainty for companies on delayed CSRD and CSDDD timelines.

Here's the current transposition status for the Stop-the-Clock Directive across EU Member States (as of September 2025):

2025

• Omnibus rejection
  • On 22 October 2025, the European Parliament rejected its negotiating mandate on the Omnibus proposal, delaying trilogue negotiations and creating uncertainty for businesses. A plenary vote is scheduled for mid-November. Want to know more about this update? Read our latest article on the Omnibus rejection here.
• EFRAG proposed new set of ESRS
  • EFRAG published exposure drafts for simplified ESRS on 31 July 2025, cutting mandatory datapoints by 57%, simplifying double materiality, and improving interoperability with global standards. Final advice to the Commission was due by 30 November 2025.

• Council agrees on position on CSRD & CSDDD requirements
  • The Council adopted its position earlier in 2025, supporting scope reductions and timeline extensions to boost competitiveness.

• Omnibus stop the clock is published in the official journal of EU
  • Published on 16 April 2025, entered into force the next day. It delays CSRD application for Waves 2 and 3 by two years and CSDDD by one year.

• Omnibus proposal presented to EU council & parliament
  • The first Omnibus package was introduced in February 2025, proposing major simplifications: scope reduction (which excludes around 80% of companies), postponements, and ESRS revisions.

2024

• Simplification Omnibus Package
  • Introduced far-reaching changes to sustainability reporting and due diligence rules, aiming to cut administrative burdens by 25% overall and 35% for SMEs. Key measures: scope reduction, voluntary SME standards, and removal of sector-specific ESRS.

• The Future of European Competitiveness
  • Mario Draghi's report highlighted compliance costs of CSRD/CSDDD (up to €1M for listed companies) and urged simplification to maintain EU competitiveness.

2023

• CSRD entered into force on 05/01/2023
  • The CSRD became law, replacing the Non-Financial Reporting Directive and expanding scope to large companies and listed SMEs.

2021

• CSRD proposal (Corporate Sustainability Reporting Directive)
  • The European Commission proposed CSRD to broaden sustainability reporting obligations to non-listed companies and SMEs, introducing ESRS and assurance requirements.

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