EU Council Adopts Final Omnibus I Package: Major Changes to CSRD and CS3D

On 24 February 2026, the Council of the European Union gave its final approval to the Omnibus I simplification package, introducing significant amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D). The changes aim to reduce administrative burden and boost EU competitiveness.

Key changes to CSRD

The revised directive raises the reporting threshold to companies with more than 1,000 employees and above €450 million in net annual turnover. Companies that began reporting for financial year 2024 (wave one companies) are exempt from obligations for 2025 and 2026. For third-country undertakings, requirements apply where the EU parent exceeds €450 million in turnover, or where a subsidiary or branch generates more than €200 million within the EU.

Key changes to CS3D

The scope of CS3D has been narrowed to companies with more than 5,000 employees and above €1.5 billion in net turnover. The obligation to adopt a climate change mitigation transition plan has been removed. The EU harmonized liability regime has also been removed, with enforcement reverting to national level. Penalties are capped at 3% of a company's net worldwide turnover.

The transposition deadline for Member States has been extended to 26 July 2028, with company compliance required by July 2029.

What this means for supply chain data

Despite the reduced scope, large companies directly subject to CS3D will still depend on sustainability data from their supply chains. Organizations are advised to begin building scalable data collection processes now to avoid last-minute gaps when compliance deadlines approach.

The full text of the directive will be published in the EU Official Journal in the coming days and will enter into force on the twentieth day following publication.

Source: Council of the European Union, Press Release, 24 February 2026