The European Commission has hailed a political breakthrough after negotiators from the European Parliament and EU Member States reached agreement on the Omnibus I

simplification package — a reform bundle aimed at easing administrative pressures on companies across the bloc.

At the core of the package are amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The changes are designed to streamline and harmonise sustainability reporting rules, offering firms greater clarity and consistency while safeguarding the ambition and integrity of the original legislation.

Under the agreement, many businesses will see reporting and due-diligence obligations lifted entirely. Companies that remain covered by mandatory requirements will gain new flexibilities, while smaller firms will be shielded from disproportionate information demands from larger counterparts. According to the Commission, the measures will cut complexity, boost efficiency, and remove obstacles that have long frustrated businesses seeking to comply with EU sustainability standards.

Reducing regulatory burden has been a flagship objective of the current Commission mandate, which aims for a 25% reduction in administrative load — and 35% for SMEs — to free up billions in investment potential. Officials say the planned narrowing of the CSRD’s scope, as well as upcoming revisions to the European Sustainability Reporting Standards (ESRS), will deliver substantial cost savings. Meanwhile, the streamlining of the CSDDD promises to eliminate procedural hurdles without weakening the EU’s commitment to curbing environmental harm and human rights abuses throughout global value chains.

Brussels sees the agreement as an important step toward a more supportive business environment — one that can help European companies expand, innovate, and create high-quality jobs.

Next steps

The provisional deal reached in the trilogue now awaits formal endorsement from both the European Parliament and the Council. Once adopted, the amendments will be published in the Official Journal of the European Union and will enter into force on the day of publication.

Background

The Commission has made simplification a central plank of its competitiveness agenda, arguing that clearer rules and lighter reporting loads are essential for an attractive, investment-friendly Europe. Since January, it has tabled seven omnibus packages alongside several other initiatives cutting across sectors from energy and taxation to defence, competitiveness, and innovation.

On 26 February 2025, the Commission unveiled a broad set of proposals aimed at reducing regulatory friction and boosting investment. Two months later, on 14 April, EU ministers signed off on a “stop-the-clock” mechanism, delaying by two years the start of CSRD obligations for large companies that have not yet begun reporting, as well as for listed SMEs. The Council also postponed by one year the transposition deadline and initial application phase of the CSDDD for the largest firms. Photo by MoSchle, Wikimedia comons.