The European Union proposed the Omnibus Regulation on 26 February 2025, setting in motion a broad effort to streamline and simplify existing sustainability reporting frameworks. Since then, negotiations between the European Parliament and the Council have advanced significantly, culminating in a provisional political agreement approved by the European Parliament on 16 December 2025, with final adoption expected in early 2026.
Key objectives of the Omnibus regulation
Consolidation of reporting requirements
The regulation intends to harmonize overlapping obligations from directives such as the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation. This consolidation aims to create a more coherent and manageable reporting landscape for companies operating within the EU.
Reduction of scope
The number of companies subject to mandatory reporting will be reduced by approximately 80%.
Reduction of administrative burden
A significant goal is to decrease reporting requirements by 25%, focusing on eliminating redundancies and overlaps without compromising the quality and substance of the information disclosed.
Enhancement of competitiveness
By streamlining reporting processes, the EU aims to bolster the global competitiveness of European industries, ensuring that sustainability efforts align with economic growth and innovation.
Key changes to the CSRD
Increased reporting thresholds
Under the provisional trilogue agreement approved in December 2025, CSRD reporting will generally apply to companies with
- more than 1,000 employees and
- net turnover exceeding €450 million
This represents a significant narrowing of scope compared with both the original CSRD thresholds and earlier Omnibus proposals.
Sector-specific standards
The directive removes the requirement for the Commission to adopt sector-specific reporting standards, avoiding an increase in the number of prescribed data points that undertakings should report.
Assurance requirements
The trilogue agreement removes the mandatory progression toward reasonable assurance and instead prioritizes targeted Commission guidance on limited assurance by 2026.
While reasonable assurance is no longer a prescribed next step, it may still emerge over time through market practice or future regulatory review.
Double materiality
While some internal discussions suggested removing the double materiality requirement (which considers both financial and impact materiality), the directive does not include this change. This means companies must continue assessing both the financial impact of sustainability factors and their broader societal and environmental implications.
Value chain reporting
The trilogue agreement significantly narrows value-chain reporting obligations by limiting mandatory data collection from entities not subject to CSRD. Companies may rely on risk-based prioritization, with expectations to look beyond direct partners only where there is plausible information suggesting adverse impacts or circumvention.
ESRS revision
The Commission will adopt a delegated act to revise the first set of ESRS. This revision will substantially reduce the number of mandatory datapoints by removing those deemed least important, prioritizing quantitative datapoints over narrative text, and further distinguishing between mandatory and voluntary datapoints
Optional taxonomy reporting
As confirmed in the December 2025 trilogue outcome, taxonomy reporting becomes optional for large undertakings with more than 1,000 employees but net turnover not exceeding €450 million. This opt-in approach reflects the EU’s broader intent to preserve taxonomy alignment for companies that choose to make alignment claims, without imposing blanket reporting obligations.
Key changes to the CSDDD
Notably, the December 2025 trilogue agreement introduced further simplifications to the CSDDD that were not explicit in the original Omnibus proposal.
These include a substantial increase in scope thresholds (to approximately 5,000 employees and €1.5 billion in net turnover), the removal of the mandatory climate transition plan requirement, and a delayed application timeline, with transposition expected by July 2028 and compliance beginning in 2029.
Together, these changes significantly narrow the directive’s reach while retaining its core due-diligence architecture.
Supply chain scope reduction
Companies are now required to assess primarily their direct business partners for human rights and environmental impacts. However, they must still look beyond direct partners when they have plausible information suggesting adverse impacts at the level of an indirect business partner, or in cases of circumvention. Companies must also seek to ensure their code of conduct is followed throughout the chain of activities.
Delayed implementation
The compliance deadline for due diligence obligations is postponed by one year. By advancing the deadline for adopting the general guideline, companies will have two years to prepare for entry into application, allowing them to fully account for best practices provided in these guidelines.
Key takeaways for businesses
- Stay informed and engaged: Businesses should closely monitor developments related to the Omnibus Regulation to understand how changes may impact their reporting obligations and compliance strategies.
- Assess current reporting practices: Evaluate existing sustainability reporting processes to identify areas of potential simplification and ensure alignment with the forthcoming consolidated requirements.
- Leverage technological solutions: Adopting digital tools and platforms can enhance efficiency in data collection and reporting, aiding in compliance with streamlined regulations.
- Prepare for transition: With the directive now reducing reporting burdens, companies should be proactive in adapting to the new framework, ensuring a smooth transition without disruption to reporting cycles.
The EU's Omnibus Directive represents a significant shift towards more efficient and business-friendly sustainability reporting. By proactively engaging with these changes, companies can not only ensure compliance but also enhance their competitive edge in a sustainability-conscious market.
How can Pulsora help?
As the EU Omnibus Directive introduces significant changes to sustainability reporting, Pulsora provides a comprehensive ESG SaaS solution that helps companies navigate these evolving requirements with efficiency and accuracy. Our platform supports businesses in streamlining their sustainability disclosures, ensuring compliance with consolidated frameworks such as CSRD, CSDDD, and the EU Taxonomy Regulation while reducing administrative burdens.
Centralized ESG data management
Pulsora enables companies to efficiently set up and manage reporting obligations, ensuring a structured and transparent approach to sustainability reporting. By consolidating disclosures from different frameworks into a single platform, businesses can reduce duplication, improve data consistency, and enhance overall reporting efficiency.
Dynamic framework mapping & reporting automation
With automated metric mapping, Pulsora links overlapping ESG metrics across CSRD, GRI, SASB, CDP, and the EU Taxonomy, ensuring that data collection happens once and can be used to report across multiple frameworks. This capability eliminates the need for redundant reporting efforts, aligning with the Omnibus Regulation’s goal of reducing compliance costs and administrative complexity.
Compliance readiness & ESG data insights
Through real-time analytics and tracking, companies can assess their readiness for upcoming regulatory changes. Our platform’s gap analysis and materiality assessment tools help companies understand which disclosures are mandatory, subject to materiality, or voluntary under evolving EU regulations. Additionally, historical reporting views allow companies to compare disclosures over time, ensuring transparency and progress tracking.
Digital-first approach & seamless integrations
Pulsora leverages API integrations to facilitate direct submissions to frameworks like CDP, EDCI reducing manual data entry and enhancing efficiency. Additionally, bulk data upload/download features and input mapping ensure that companies can quickly adapt to new requirements without disrupting existing workflows.
Future-proofing sustainability reporting
As the Omnibus Regulation evolves, Pulsora remains adaptive—continuously updating its framework catalogs, disclosure modules, and compliance automation features to align with the latest regulatory developments. Companies leveraging Pulsora can ensure they remain ahead of compliance deadlines, seamlessly integrating updates into their sustainability strategies without additional administrative burden.
With the EU’s push for simplified, technology-driven sustainability reporting, Pulsora provides businesses with the tools to not only meet compliance requirements but also enhance their ESG strategy, unlocking competitive advantages in a sustainability-conscious market.
Editor’s note (Dec 2025): This article reflects the European Commission’s February 2025 Omnibus proposal, updated to incorporate outcomes from the December 16, 2025 trilogue agreement between the European Parliament and the Council.
