EU adopts Omnibus I reform: What the simplified ESG obligations mean for companies from 2026
Simplified ESG obligations and new thresholds
The EU has reached a preliminary agreement on the so-called Omnibus I package , an adjustment of existing ESG reporting obligations, the CSRD and EU-wide due diligence obligations. The aim of the reform: to reduce bureaucracy, reduce complexity and focus more on large companies.
The changes relate in particular to the Corporate Sustainability Reporting Directive (CSRD) and the requirements for global supply chains.
What we don't think will change, however, is the strategic importance of ESG data. The focus is now shifting more strongly to the strategic usability of ESG data through efficient and automated implementation.
1. What was decided? The most important changes at a glance
Simplified sustainability reporting (CSRD adjustments)
In the future, only EU companies that
- Employ over 1,000 people
- Over 450 million euros in sales
For non-EU companies, the same turnover threshold applies to activities in the EU market.
Further simplifications in ESG reporting:
- Reports are becoming more quantitative and less complex
- Industry-specific standards will become voluntary
- Smaller companies do not have to provide additional information if they go beyond voluntary standards
2. Due diligence obligations are severely restricted
The biggest adjustments relate to the corporate due diligence (EU Due Diligence Regulation):
Only companies with
- Over 5,000 employees
- Over 1.5 billion euros in sales
will have to carry out a full due diligence review in the future.
This also applies to non-EU corporations with corresponding sales in the EU.
Additionally deleted:
- Commitment to create a Paris-compatible transition plan
- EU-wide sanctions – liability remains at national level
A key point of the Omnibus I package is the significant reduction of administrative requirements within the European Union.
3. What does this mean for companies that are already collecting ESG data?
Despite the simplifications, an analysis by the Federal Office of Justice and Consumer Protection shows that discontinuing ESG activities would be an expensive step backwards for many companies.
I. Resuming ESG Reporting Is Expensive
Stopping and later restarting ESG processes causes significantly higher costs than lean continued operation.
II. Nevertheless, many data collections remain necessary
Even after the ESG changes in 2026 , obligations will continue to apply, such as:
- Product compliance (e.g. PCF, LCA)
- Supply chain and customer requirements in global markets
- CO₂ data provision, for example for banks and insurance companies
III. Companies lose room for manoeuvre
By pausing:
- Breaks down the data history
- Internal know-how decreases
- Companies lose the basis for future efficiency analyses and benchmarks
IV. ESG remains on course for international growth
The US, UK, China, global supply chains and financial markets continue to raise their standards.
ESG pausing is a relief in the short term, but a real competitive risk in the long term.
4. What does the reform mean strategically for companies?
Despite the new regulation, one thing in particular will become clear in the long term:
The question is no longer whether ESG is relevant, but how efficiently companies implement their ESG management.
- Automation, clear processes and digital solutions are becoming crucial.
- Companies need systems that function independently of regulatory changes.
Those who rely on structured data, standardized workflows and ESG management software today can:
- Drastically reducing ESG efforts
- Generate reports automatically at any time
- Use data strategically (e.g. for investors, customers, talent acquisition)
5. What does this mean for existing and potential new customers?
Omnibus I confirms a trend that we have been observing for months:
- Companies want to manage ESG more easily, quickly and cost-effectively
- The focus is shifting away from "ticking off the regulatory requirements" to entrepreneurial benefits
- Digitization and automation of ESG data are becoming the key success factor
Our mission therefore remains unchanged and is even strengthened:
We enable ESG management with minimal effort and maximum benefit, automated, scalable and future-proof. Regardless of how regulatory conditions change.