Today, the European Parliament approved the Omnibus I amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), with 428 votes in favour, 218 against and 17 abstentions.

The amendments aim to reduce reporting obligations and ease compliance for businesses by narrowing the scope of both directives, thereby lowering administrative burdens and associated costs while maintaining their core objectives.

Under the revised framework, the CSRD will apply to EU companies with more than 1,000 employees and a net annual turnover exceeding €450 million. For non-EU companies, sustainability reporting requirements will apply where EU-generated turnover exceeds €450 million, including subsidiaries and branches generating more than €200 million in EU turnover.

The CSDDD will apply to EU companies with more than 5,000 employees and a net annual turnover above €1.5 billion, as well as to non-EU companies meeting the same turnover threshold within the EU.

We hope these changes will support a more level playing field for both EU and non-EU companies operating within the Single Market. We now await the Council of the European Union’s adoption of the file and further details on the final legislative texts.