EU Parliament rejects trilogue negotiations on the Omnibus Package

Co author: Sebastian Sievers

On 22 October 2025, the European Parliament decided not to enter into direct trilogue negotiations on the so-called Omnibus Package I.

The underlying draft directive, presented by the European Commission on 26 February 2025, provides for adjustments and simplifications to the Corporate Sustainability Reporting Directive (CSRD) as well as the Corporate Sustainability Due Diligence Directive (CSDDD). For more detailed information on the content of the Omnibus Package, please see here.

Significance of the decision and timeline

With this decision, Parliament rejected the proposal of the JURI Committee from 13 October 2025, which had recommended entering directly into trilogue negotiations. The Committee had aimed to further limit the reporting obligations under the CSRD and the due diligence obligations under the CSDDD, so that only large companies would remain subject to the respective requirements. According to the Committee’s proposal:

• CSRD: Only companies with more than 1,000 employees and a net turnover exceeding EUR 450 million would be required to prepare sustainability reports.
• CSDDD: The due diligence obligations would apply only to companies with more than 5,000 employees and a net turnover above EUR 1.5 billion.

As the Parliament did not approve the accelerated legislative procedure, the draft remains open to further amendments. A final vote in plenary is scheduled for 12 and 13 November 2025, with the mandate for trilogue negotiations expected to be granted in the last week of November 2025.

Conclusion and outlook

The decision delays the introduction of the planned simplifications and prolongs the current legal uncertainty regarding ESG requirements within the European Union. Companies should closely monitor upcoming developments and start reviewing their internal processes now to prepare for possible adjustments to reporting and due diligence obligations. This will help mitigate compliance risks and implementation delays, particularly regarding CSRD and CSDDD requirements.

We support your company in adapting compliance and reporting structures, optimizing internal processes and preparing your organization for upcoming ESG-related changes. Please feel free to contact our team of experts.