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EU Omnibus Regulation Summary
EU Omnibus Regulation Summary (June 2025)
Key Update: The "Stop the Clock" directive was adopted on 14 April 2025, postponing CSRD requirements for many companies by 2 years [citation:7]
1. Scope Reduction
- Only companies with >1,000 employees and €50M+ turnover must report (80% reduction) [citation:3]
- Listed SMEs completely exempt from mandatory reporting [citation:8]
- Non-EU companies threshold raised from €150M to €450M EU turnover [citation:4]
2. Timeline Changes
- Wave 2: Delayed from 2026 to 2028 (FY2027 reports) [citation:6]
- Wave 3: Delayed from 2027 to 2029 (FY2028 reports) [citation:6]
- Member states must transpose by 31 Dec 2025 [citation:1]
3. Reporting Simplifications
- Substantial reduction in mandatory ESRS datapoints [citation:7]
- Sector-specific standards requirement removed [citation:5]
- Priority given to quantitative over qualitative data [citation:5]
4. Taxonomy Changes
- Mandatory only for companies with >1,000 employees AND €450M+ turnover [citation:3]
- Voluntary opt-in system for other large companies [citation:2]
- Simplified DNSH criteria and reporting templates [citation:1]
5. CSDDD Adjustments
- Implementation delayed 1 year to July 2028 [citation:7]
- Due diligence limited to direct suppliers (Tier 1) [citation:7]
- Civil liability regime removed - now follows national laws [citation:4]
Next Steps: Final approval expected late 2025. Companies should focus on double materiality assessments and data systems while awaiting final rules [citation:6][citation:8]
Sources: KPMG [1], EY [2], EC [3], NatLaw [4], PwC [5], WTW [6], WhiteCase [7], Leafr [8]