CSRD Omnibus 2026: Key Changes, New Thresholds & Impact for Your Business

Update June 2026: The EU Omnibus package has moved from proposal to adopted law. The Omnibus I Directive, formally published as Directive (EU) 2026/470, entered into force on March 18, 2026. It significantly narrows the scope of the Corporate Sustainability Reporting Directive (CSRD), adjusts timelines, and reduces reporting obligations for many companies. Sustainability transparency, value chain data, and product-level environmental insights remain strategically important for companies preparing for future compliance, customer requests, and data-driven decision-making.

The CSRD has not disappeared. It has been simplified, delayed for many companies, and refocused on larger undertakings — creating a valuable window to build robust sustainability data foundations.

From Omnibus Proposal to Omnibus I Directive

On February 26, 2025, the European Commission published the long-anticipated Simplification Omnibus proposal, designed to reduce CSRD reporting obligations and better align the directive with the EU Taxonomy, ESRS, and CSDDD. Following the legislative process, the Omnibus I Directive entered into force as Directive (EU) 2026/470 on March 18, 2026. Companies can now plan based on adopted EU law, not just a political proposal.

The direction is clear: fewer companies face direct reporting obligations, standards are simplified, and the trickle-down effect on smaller companies is limited. However, the core logic of sustainability transparency remains — for companies directly in scope and for many others affected indirectly through supply chains.

What Changed Under the CSRD Omnibus?

The Omnibus I Directive makes the framework more proportionate and less burdensome, especially for smaller companies. The key changes include:

• Narrower CSRD scope: Many previously affected companies are now expected to fall outside the mandatory reporting obligation.
  
  
• Higher thresholds: Reporting is generally required for companies with more than 1,000 employees and more than €450 million in net turnover.
  
  
• SME relief: Listed SMEs are removed from the mandatory scope; voluntary reporting remains an option.
  
  
• Delayed timeline: Member States must implement changes into national law by March 2027.
  
  
• Simplified ESRS: Fewer mandatory datapoints and a more manageable materiality assessment.
  
  
• Reduced value chain burden: Limits on how much sustainability data large companies can request from smaller partners.
  
  
• Assurance: Limited assurance remains the standard level; a move toward reasonable assurance is not on the immediate horizon.
  
  

New CSRD Scope and Reporting Thresholds

Under the revised framework, mandatory CSRD reporting generally applies to companies with more than 1,000 employees and more than €450 million in net turnover — a major reduction from the previous scope. Non-EU companies with significant EU turnover may also be affected.

Companies outside the direct scope should not treat this as a complete release from sustainability expectations. Suppliers in industries such as automotive, electronics, mechanical engineering, and chemicals may still need to provide product, emissions, or supply chain data to customers that remain in scope.

What the ESRS Simplification Means

Revised ESRS drafts reduce mandatory datapoints and simplify materiality assessment — lowering complexity and reporting costs. For reporting teams, this means a shorter sustainability statement. However, the underlying need for reliable data does not disappear. Companies still need to understand where environmental impacts occur, how product and supply chain decisions influence emissions, and which data is robust enough to support internal decisions and external communication.

Why Value Chain and Product Data Still Matter

Product carbon footprints (PCFs), life cycle assessments (LCAs), and environmental product declarations (EPDs) depend on product- and supplier-specific information that cannot be assembled at short notice. They require structured processes, clear responsibilities, consistent data models, and tools that connect product, material, supplier, and emissions data.

CSRD reporting operates at the corporate level, such as corporate carbon footprints (more information on Scope 3 emissions under CSRD here) — covering a company's overall environmental impacts, risks, and governance. But the data that feeds corporate-level reports is often generated and stored at the product level: bill-of-materials data, supplier emissions factors, material compositions, and process-specific energy consumption. Companies that have already built robust product-level data foundations — for PCF, LCA, or EPD purposes — are therefore better positioned to aggregate that data upward into corporate sustainability statements. Conversely, companies building their CSRD data infrastructure from scratch have an opportunity to do so in a way that also serves product-level reporting needs.

For many industrial companies, the strategic question is therefore not only: "Are we directly in scope?" but also: "Do we have the data foundation to answer sustainability questions from customers, regulators, investors, and internal decision-makers?"

Strategic Impact for Companies

The CSRD Omnibus creates breathing room — and a strategic opportunity. Companies now have more time to build the right foundations instead of rushing into fragmented reporting processes. Key actions include:

• Assessing whether the company remains directly in scope under the revised thresholds
• Monitoring national transposition and future ESRS updates
• Identifying sustainability data gaps across products, materials, suppliers, and processes
• Building governance structures for sustainability and environmental data
• Preparing for customer requests related to PCF, LCA, EPD, and Scope 3
• Connecting compliance and sustainability data instead of managing them in silos
• Evaluating digital tools that support scalable, auditable sustainability data

A "not yet" doesn't mean "no longer now." Companies that act with foresight now will have a clear advantage later — in transparency, strategy, and competition.

Andreas Schiffleitner, IPOINT Product Manager for Sustainability Products

Verdantix has also described the Omnibus delay as a strategic opportunity. In "The CSRD, the Omnibus and the Case for a Reset," the independent research firm notes that 20% of 280 surveyed respondents said the changes would actually increase their investment in ESG and sustainability software.

Rather than seeing the Omnibus-induced delay as a setback, firms should treat it as a strategic window. A chance to reset, build the right foundations and align reporting efforts.

Source: Verdantix – The CSRD, the Omnibus and the Case for a Reset

How IPOINT Supports Sustainability Data Readiness

The next phase of sustainability management will be less about producing long reports and more about building reliable, reusable, decision-ready data foundations. IPOINT helps companies structure and analyze product, material, supplier, process, and sustainability data — supporting PCF, LCA, EPD, digital product passports, value chain transparency, and CSRD-related requirements.

Build the Data Foundation for Sustainability Intelligence

Explore how IPOINT helps companies turn product, supply chain, and sustainability data into decision-ready insights for PCF, LCA, EPD, CSRD-related requirements, and long-term sustainable value creation.

Conclusion: Why Companies Should Act Now

The CSRD has not disappeared. The Omnibus I Directive has narrowed its scope, simplified requirements, and created more time — but the need for reliable sustainability data remains. Companies that use this phase strategically can move beyond reactive reporting and build the foundations for better decisions, stronger customer relationships, and long-term resilience.