EU Approves Omnibus I Package, Delays Due Diligence Rules Until 2029

The EU Parliament approved the Omnibus I package, limiting the scope of the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).

Under the revised rules, CSRD will apply only to companies with over 1,000 employees and an annual turnover above 450 million euros, excluding around 90% of firms. Due diligence obligations under CSDDD will apply from 2029 and only to companies with more than 5,000 employees and 1.5 billion euros in revenue. Sector-specific reporting will be voluntary, and smaller companies will follow SME standards. Enforcement of due diligence will occur at the national level, with fines capped at 3% of global turnover. The package now awaits formal approval by the Council of the European Union and will enter into force 20 days after publication in the EU Official Journal.