Omnibus I directive simplifying CSRD and CSDDD takes effect

The sustainability reporting obligation (CSRD) now applies only to companies with more than 1,000 employees and over 450 million euros in revenue; listed SMEs are fully exempt. The supply chain due diligence obligation (CSDDD) only takes effect from 5,000 employees and 1.5 billion euros in revenue, with transposition by 2028/application from 2029. A significant relief, but also a weakening of the ESG requirements for tens of thousands of companies.

Adopted by the Council on 24 February 2026, published in the Official Journal on 26 February, entered into force on 18 March 2026.