If you followed our article from March “CSRD: What Is the Omnibus Package”, you already know that the EU has been working on simplifying sustainability and due-diligence regulations. Now, the Omnibus I package has moved forward, introducing major changes that could impact who must report, when, and how much detail is required.

What Exactly Is the Omnibus I Package (2025)?

The Omnibus I package is part of the European Commission’s broader “simplicity push” announced in February 2025, aimed at cutting red tape and boosting EU competitiveness.
In practical terms, it proposes major reform to two cornerstone sustainability laws:

• CSRD (Corporate Sustainability Reporting Directive) — the EU’s framework for ESG reporting.

• CSDDD (Corporate Sustainability Due Diligence Directive) — which requires companies to assess human rights and environmental risks along their value chains.

The main aim? Simplify reporting, focus stricter requirements on large companies, and give firms more time to comply.

Key Changes & Reform Measures

Here are some of the most important changes introduced by the Omnibus I package, and what they could mean in real life:

1. Narrower Scope: only companies with 1,000+ employees and significant financial size (turnover or assets) are now required to report. Roughly 80% of firms previously in scope may now be exempt.

2. Extended Deadlines (“Stop-the-Clock”):

• CSRD reporting delayed by 1–2 years depending on company size.

• CSDDD enforcement now 2028 for large firms.

• SMEs and smaller credit institutions may report as late as 2029.

3. Simplified Reporting Requirements

• ESRS revisions: Fewer data points, clearer materiality guidance, streamlined structure.

• Value-chain cap: Smaller companies provide less ESG data to clients.

• Sector-specific standards may be removed.

• Audit limited to “limited assurance”: No mandatory “reasonable assurance” for now.

4. Changes to Due Diligence (CSDDD)

• Tier-1 suppliers only; indirect partners may be excluded.

• Mandatory climate transition plans could become voluntary.

• National governments have more discretion on civil liability.

5. Taxonomy Reporting Adjustments

• Mandatory only for the largest firms (1,000+ employees).

• Smaller firms may opt in voluntarily (VSME)

What are the Implications for Businesses?

Potential Upsides

• Reduced Burden: Many companies that were going to be held to CSRD reporting may now fall outside mandatory reporting, saving time and money.

• More Time to Prepare: The delays give firms more breathing room to build the right systems, especially for due diligence under CSDDD.

• Transparency with Flexibility: Even companies that are now “exempt” can still opt to report voluntarily, using a simpler, leaner framework.

• Cost Efficiency: With fewer data points and simpler reporting standards, companies may spend less on data collection, assurance, and compliance.

Risks & Criticisms

• Less Transparency: Critics argue that cutting mandatory ESG reporting weakens accountability. With 80% fewer firms in scope, some say the overall flow of sustainability data could decrease.

• Weaker Due Diligence: Scaling back obligations for suppliers may reduce the ability to track environmental or human rights risks deep in value chains.

• Lower Assurance: Limiting auditing to “limited assurance” means less rigorous checks on reported sustainability data.

• Greenwashing Concern: When reporting is voluntary, there’s a risk some companies will disclose minimal ESG data just for appearance, not substance.

What Should Companies Do Now to Prepare?

Here’s a practical game plan for businesses navigating the Omnibus I changes:

1. Re‑assess Your ESG Scope : Check whether your company still falls within the mandatory CSRD scope under the new thresholds.
   
   

2. Review Your Reporting Strategy : Decide whether to rely on the new simplified mandatory standards, or continue with more ambitious (voluntary) ESG disclosure.
   
   

3. Engage with Stakeholders : Use this moment to talk to investors, customers, and partners: how will they view your sustainability reporting going forward?
   
   

4. Plan for Due Diligence : Even if CSDDD obligations are reduced, assessing your value-chain ESG risks remains strategically valuable, especially for reputation and long-term risk.
   
   

5. Strengthen ESG Data Systems : Use the two-year delay to strengthen your data systems, ensure you have reliable ESG metrics, and prepare for future reporting or assurance
   
   

6. Stay Informed :  Monitor final legislation, ESRS updates, and delegated acts.
   
   

Why This Matters Now 

These Omnibus I reforms come at a pivotal moment. While they lighten the regulatory load for many companies, they also shift the sustainability playing field in important ways. For organizations that see ESG reporting not just as a compliance burden but as a strategic asset, this is a moment to reflect: Do you scale back? Or double down?

If you lean into voluntary transparency, you could turn these simplifications into a competitive edge, signaling to investors, partners, and customers that you’re serious about sustainability, no matter what the minimum rules say.

Omnibus Changes at a Glance

Conclusion

The Omnibus I package may simplify the rules on paper, but it complicates a deeper strategic choice: with narrower scopes, delayed timelines, lighter assurance, and reduced due-diligence obligations, companies must now decide whether to do less—or to use this breathing room to build stronger, more resilient ESG infrastructure. The firms that treat this moment as a reset, not a retreat, will be better positioned when investor expectations rise, supply-chain demands return, and future ESRS revisions inevitably tighten again.

ECO-OS helps companies navigate exactly these shifts—strengthening ESG data systems, clarifying materiality, preparing for long-term disclosure needs, and supporting voluntary reporting that’s credible, consistent, and audit-ready. If you want to turn uncertainty into preparedness and optional transparency into a strategic advantage, talk to an ECO-OS expert today.