The EU has changed the rules of the game. Significantly fewer companies will be required to report under the CSRD in the future – and the deadlines have been postponed. Sounds like relief. And it is. But anyone who sits back and does nothing now might regret it later.
What exactly is the Omnibus Package?
In February 2025, the European Commission presented a comprehensive simplification package – the so-called Omnibus I Package. The goal: reduce bureaucracy, strengthen competitiveness, and make sustainability obligations more practical.
After months of negotiations, the EU Parliament approved the package in December 2025, and the Council of the EU followed in February 2026. The amendments were published as Directive 2026/470 in the Official Journal of the EU on 26 February 2026 and have been in force since 18 March 2026.KPMG-Law
The most important changes at a glance
1. New thresholds – who still has to report?
This is the biggest change. In the future, only companies with more than 1,000 employees and more than 450 million euros in revenue will be required to submit a sustainability report under the CSRD.KPMG-Law
For comparison: previously, significantly lower thresholds applied – with the result that hundreds of thousands of companies in Europe fell within the scope. The personal scope of the CSRD is thus reduced by around 80 percent.IDW
For many SMEs, this means: no more obligation.
2. Postponed deadlines
The entry into force of the CSRD reporting obligations has been postponed to 1 January 2027 for second-wave companies and to 1 January 2028 for third-wave companies.Chamber of Industry and CommerceListed SMEs are completely removed from the scope.
3. Simplified ESRS
The ESRS will be revised and streamlined, and sector-specific standards will be eliminated entirely.Rödl & PartnerThe European Commission has tasked EFRAG with simplifying the standards – the result is to be adopted as a delegated act within six months.
4. Less audit effort
The originally planned transition from "Limited Assurance" to "Reasonable Assurance" – meaning a more comprehensive and expensive audit – has been dropped.GreenvisionsolutionsThis noticeably reduces costs for companies subject to reporting obligations.
5. Protection against supply chain pass-through
Information that CSRD-obligated companies may request from suppliers with up to 1,000 employees is limited to a voluntary standard based on the VSME.IDWSmaller suppliers are thus better protected against excessive data requests.
What does this specifically mean for your company?
That depends on your size:
Under 1,000 employees and under €450 million in revenue?You will most likely no longer fall under the CSRD obligation. This is genuine relief – especially for companies that were right in the middle of preparations.
Above the new thresholds?For you, little changes in the basic framework. The obligation remains, but the ESRS will be simplified. Those who have already started have an advantage.
In the supply chain of large corporations?Even if you are not subject to reporting obligations yourself, customers and partners will continue to request ESG information – just on the basis of the leaner VSME standard.
Why now is still not a good time to stop
Here's the honest assessment: The Omnibus Package is not a rejection of ESG. It is a recalibration.
The obligation remains for large companies. Customers, banks and investors request ESG data regardless of legal thresholds. And anyone who stops building structures today will start from scratch tomorrow – possibly under time pressure.
On top of that: The amending directive contains a review clause regarding a possible future expansion of the CSRD's scope.Rödl & PartnerSo the topic is not off the table – it has been recalibrated.
Anyone who now structures ESG processes systematically has a lasting advantage: a better data basis, less effort for future requirements, and more credibility with stakeholders.
Conclusion
The Omnibus Package brings real relief – especially for SMEs. Fewer companies have to report, the standards are being simplified, and the deadlines have been extended.
But: ESG is not going away. It is becoming more focused. Because regardless of whether a legal reporting obligation exists, sustainability information remains a central topic in everyday business. Banks evaluate ESG data when granting loans and in the context of financing discussions. Insurance companies are increasingly factoring sustainability risks into their risk assessments. Business partners – particularly those who are themselves subject to reporting obligations – will continue to request ESG information from their supply chain, regardless of what the law requires. For B2C customers, the topic also remains relevant.
Those who use the time gained to set up processes properly instead of putting everything on ice will be better positioned in the long term.