A few months ago, I wrote a first article to explain the Omnibus package in plain terms. Since then, the European institutions have finalised the legislative process, and the text was published in the Official Journal on 26 February 2026. Here is what to remember now, in March 2026, with the final figures and timelines.
First of all: what did the CSRD actually require from companies?
To understand Omnibus, you first need to go back to the CSRD (Corporate Sustainability Reporting Directive), adopted by the European Union in 2022. This directive required large companies to publish a detailed annual sustainability report covering their environmental, social and governance impacts. Not a cosmetic report, but a rigorous analysis of risks and opportunities.
In practice, this concerned around 50,000 companies in Europe. The Commission estimated that this obligation created a considerable compliance cost: more than €6 billion a year in administrative reporting costs alone. Hence the "reducing red tape" rhetoric that dominated the debates in Brussels.
So… what exactly is Omnibus I?
Omnibus I is a legislative package presented by the von der Leyen Commission in February 2025. The stated goal: reduce administrative burdens by 25% for companies and 35% for SMEs. To achieve this, the Commission struck at the source by simultaneously revising three key texts: the CSRD, the CSDDD (Corporate Sustainability Due Diligence Directive), and the Green Taxonomy.
After an intense legislative process (Parliament vote in December 2025, Council agreement in February 2026), the final text was published in the Official Journal on 26 February 2026 and entered into force on 18 March 2026.
For some, this was necessary to "cut red tape." For others, it mainly risked weakening environmental and human rights protections just as they were becoming effective. The reality lies somewhere in between, but clearly tilts in favour of companies.
In practice, who is affected now?
This is the most radical change. The original CSRD applied to any company exceeding certain thresholds. Omnibus I raises the bar significantly.
New CSRD scope
Only large companies with more than 1,000 employees AND annual net turnover above €450 million are required to report. For reference, this reduces the number of companies concerned from around 50,000 to roughly 5,000–10,000, depending on estimates. Small and medium companies, even listed ones, are no longer in scope.
Also gone: the requirement for listed SMEs to be exempted only on request. From now on, they are excluded from the CSRD's scope by default.
For the CSDDD (which requires an analysis of value chains for human rights risks), the thresholds also rise: more than 5,000 employees AND more than €1.5 billion in turnover for EU entities. Non-EU entities with turnover in Europe above €1.5 billion remain in scope.
Timelines: everything is postponed, but not everywhere
For companies that remain within the CSRD's scope, reporting timelines have been postponed. This is good news for compliance teams, who now have a bit more time to prepare. Here is the timeline:
CSRD timeline
First wave: The very largest companies (more than 500 employees) must report on financial year 2024 starting in 2025. This timeline has not changed.
Second wave: Instead of 2026 (for financial year 2025), companies with 250 to 500 employees (below the new 1,000 threshold) will report in 2028 for financial year 2027.
Third wave: Listed SMEs, initially scheduled for 2027, are no longer in scope. End of discussion.
For the CSDDD, transposition and application deadlines generally remain unchanged: transposition by July 2028, application from July 2029. But the reduced scope means far fewer companies will have to apply these obligations.
Beyond the numbers: what really changes in substance
Reducing the scope is one thing. But Omnibus I has also lightened the substance of the requirements for those who remain.
The Commission asked EFRAG (European Financial Reporting Advisory Group) to revise the ESRS (European Sustainability Reporting Standards) to significantly reduce the number of required datapoints. The goal: for the sustainability report to look less like a full audit and more like a strategic document on material issues.
There is also a shift from a very detailed approach to social and environmental impacts towards one more focused on "double materiality": what are the real risks for the company, and what are the company's real impacts on society and the environment?
For the CSDDD, it's similar: due diligence requirements remain, but fewer companies apply them, and the analysis chain can be limited to "real and probable risks" rather than an exhaustive inventory.
What happens now?
Member States have until 19 March 2027 to transpose the CSRD changes into national law. France will therefore need to adapt its labour law and reporting obligations by then.
Meanwhile, EFRAG is finalising the revised ESRS standards. A final version is expected by the end of 2026, giving companies visibility on exactly what they will need to report.
On the political front, Brussels continues to debate the classic trilemma: climate ambition, economic competitiveness, and social justice. Omnibus I has clearly prioritised competitiveness. Further adjustments in the coming years cannot be ruled out.