Further analysis of the enforcement mechanism reveals that competent authorities across multiple member states are expected to adopt a phased approach, with initial focus on high-risk product categories before extending surveillance to broader market segments. The transition period, while
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The EU Council adopted the Omnibus I Directive on 24 February 2026, substantially amending the Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD). The amendments reduce company scope thresholds by approximately 70%, eliminate climate transition plan requirements, remove EU-wide civil liability provisions, and delay implementation until July 2029.
The Omnibus I package was first proposed on 26 February 2025 as part of the EU's regulatory simplification agenda. The European Parliament and Council reached provisional agreement on 9 December 2025, with Parliament adoption following on 16 December 2025. These changes come less than two years after the CSDDD was finalised and passed into law on 24 May 2024, following two years of institutional negotiations.
The final text represents a fundamental restructuring of EU sustainability compliance frameworks. For the CSDDD, the scope reduction affects both EU and non-EU companies through dramatically increased thresholds. EU companies must now exceed 5,000 employees and EUR 1.5 billion global net turnover, compared to the previous 1,000 employees and EUR 450 million thresholds. Non-EU companies face increased thresholds from EUR 450 million to EUR 1.5 billion net turnover in the EU.
The CSRD scope changes eliminate "wave 3" companies entirely - publicly listed small and medium-sized enterprises that were required to begin reporting for financial years starting 1 January 2026. Current "wave 1" companies may receive exemptions from reporting obligations for financial years beginning between 1 January 2025 and 31 December 2026.