The Omnibus I package consists of three proposals: Firstly, a proposal for a directive postponing the start of application of the Corporate Sustainability Due Diligence Directive (CSDDD) and certain reporting requirements in the Corporate Sustainability Reporting Directive (CSRD). Secondly, a proposal for a directive with substantive changes to the CSDDD and CSRD. And thirdly, a proposal for a regulation amending the Carbon Border Adjustment Mechanism (CBAM) regulation. The Omnibus II proposal was presented on the same day, but concerns another issue, namely primarily the InvestEU programme.

Criticism of the far-reaching amendments
The proposed amendments to the “Sustainability Omnibus” (Omnibus I package) are far-reaching and undermine hard-won achievements for workers, the environment and the climate. In addition, they cause legal uncertainty. Companies that have already started implementing reporting and due diligence obligations as pioneers will now be penalised due to the incentive given to wait and see.

"After eight years of democratic process, there is now a threat of a quick shot in favour of companies. It's not simplification to give companies the right to look away. It's a step backwards. The Corporate Sustainability Due Diligence act is not a bureaucratic obstacle, it is the shield against exploitation and environmental destruction", criticises Wolfgang Katzian, President of the ÖGB and ETUC.

Postponement of the start of application - "stop the clock"
The EU Commission proposes to postpone the transposition deadline of the CSDDD for member states by one year from July 2026 to July 2027. The first companies are not expected to meet due diligence requirements for their supply chain until 2028 (previously 2027). For the CSRD, the transposition deadline for member states has already expired in July 2024. The EU Commission proposes to postpone the reporting requirements. The reporting requirements for companies currently falling within the scope of the CSRD and required to report from 2026 or 2027 will be postponed by two years. The EU Commission urges that this proposal be adopted as soon as possible. On 1 April, the EU Parliament will vote on whether to use an accelerated procedure.

Amendments to the Corporate Sustainability Due Diligence Directive (CSDDD)
The CSDDD requires companies to identify and reduce sustainability risks and human rights abuses along their supply chains. This is now to be greatly weakened. Companies should concentrate only on direct suppliers; further checks of the value chain will be eliminated. In addition, the risk assessment should not be carried out annually, as previously planned, but only every five years. Member states should not legislate more ambitiously than the CSDDD and the EU-wide civil liability regime should be deleted. Instead, the national liability regimes should apply, which makes the enforcement of legal claims for injured parties much more difficult.

Amendments to the Corporate Sustainability Reporting Directive (CSRD)
The CSRD requires companies to produce more comprehensive and standardised sustainability reports to improve transparency on environmental, social and governance aspects. In the future, only companies with more than 1,000 employees and sales of more than 50 million euros or a balance sheet total of more than 25 million euros will be subject to the reporting obligations of the CSRD, according to the proposed amendments. The number of obligated companies will thus be reduced by about 80%. Furthermore, companies should only be allowed to request limited information from their suppliers outside the CSRD scope.

Amendments to the Taxonomy Regulation
The Taxonomy Regulation defines which economic activities are considered environmentally friendly, so that companies and investors can clearly see what is sustainable. The Taxonomy regulation itself is not intended to be amended here, but the CSRD amendments contained in the Omnibus also concern taxonomy reporting. The EU Commission is also proposing amendments to the delegated acts based on the Taxonomy regulation.

Amendments to the Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) includes a carbon tax on certain imported goods to create a level playing field and prevent carbon leakage abroad. The Omnibus proposes an adjustment of the thresholds. Importers producing less than 50 tonnes of CO2 emissions per year are to be exempted from the CBAM, which would mean that around 182,000 importers would no longer be covered by this scheme.

A more competitive Union - or just a gift to companies?
In February, the EU Commission held a closed event with multinational companies instead of a public consultation; 57 companies were invited, and only two trade unions and ten NGOs. Thus, it was already clear here in whose interest these amendments would be. The EU should lead on sustainability and continue to pursue the objectives of the Green Deal from the last legislature. The proposed amendments lead to a strong dilution of sustainability standards. “This is not simplification. This is deregulation. The EU Commission claims to be cutting red tape, but is in fact gutting its human rights legislation.” ETUC Deputy Secretary General Isabelle Schömann criticises the Omnibus proposal.

The next steps
The proposed amendments require the consent of the EU Parliament and the Council. Both co-legislators may also amend the EU Commission's proposals. In contrast to the last legislative period, when the legislative acts affected by the omnibus was adopted by a coalition of progressive forces in the EU Parliament, the EPP can also form a majority with the right-wing parties in this period.The outcome of the legislative process is therefore uncertain. Marion Lupin of the European Coalition for Business Justice (ECCJ) pointed out in an event that the amendment of recently adopted legal acts is new territory and a journey into the unknown.

Further information­:
EU Commission: Omnibus I Proposal
AK/ÖBG: Press release on the Omnibus (German only)
ETUC: Unions protest against Omnibus’ drive towards deregulation
ETUC: Omnibus weakens workers protections from corporate abuse  
European Coalition for Corporate Justice (ECCJ): Joint statement. The big EU deregulation
AK EUROPA: Open letter to Ursula von der Leyen