EU Narrows Sustainability Rules in Omnibus I, Trimming CSRD and CSDDD Scope

EU member states approved the Omnibus I package, dramatically reducing sustainability obligations by keeping the CSRD’s 1,000-employee cutoff but adding a €450 million annual revenue threshold that excludes about 90% of firms, and by raising the CSDDD thresholds to 5,000 employees and €1.5 billion in revenue. The package also eliminates the climate-transition plan requirement and the EU-wide liability regime, caps penalties at 3% of global revenue, and delays CSDDD compliance to July 2029. It limits reporting demands on smaller suppliers and allows reliance on reasonably available information. The aim is to cut red tape, simplify rules, and boost EU competitiveness with publication to follow and entry into force 20 days after.