What has happened?
In February 2025, the European Commission presented the Omnibus I package – a set of measures to streamline sustainability regulations. The final formal steps followed in early 2026: on 26 February 2026, Directive (EU) 2026/470 was published in the Official Journal. It has been in force since 18 March 2026.
The package affects not only the CSRD, but also the Supply Chain Directive (CSDDD), the EU Taxonomy and other regulations. The aim: to reduce the administrative burden on companies by at least 25%.
The new thresholds: Who still has to report?
The change with the greatest impact concerns the scope of the CSRD. The new criteria:
Subject to reporting: Companies with more than 1,000 employees AND over €450 million in net turnover.
Listed SMEs: Fully excluded from the scope of application.
Companies below the new thresholds: Permanently excluded from the CSRD – not merely a postponement.
Result: Around 80% of the companies originally affected are no longer subject to reporting requirements. The reporting obligation is concentrated on very large companies.
What else has changed?
ESRS: 61% fewer data points
EFRAG revised the reporting standards in November 2025. The number of mandatory data points has fallen from around 1,073 to approximately 320. All voluntary data points have been removed. The new structure is more readable and logically organised.
Sector-specific standards: removed
The sector-specific ESRS originally planned will not be introduced. Instead, the Commission is relying on voluntary sector-specific guidelines.
Value Chain Cap: Protection for smaller companies
Companies subject to reporting requirements may not request data from suppliers with fewer than 1,000 employees that goes beyond the VSME standard. This limits the trickle-down effect.
Review clause: return possible
The European Commission must review by 30 April 2031 whether the scope of application should be extended again. The relief measures are therefore not set in stone.
Milestone Date
EFRAG draft to the European Commission | 3 December 2025 |
|---|---|
Omnibus Directive in the EU Official Journal | 26 February 2026 |
Delegated act | (expected) Mid/late 2026 |
First application (mandatory) | Reporting year 2027 |
Voluntary early application possible | Reporting year 2026 |
DACH perspective: Where does national implementation stand?
Austria: The Sustainability Reporting Act (NaBeG) was adopted on 21 January 2026. The new thresholds are already incorporated.
Germany: Implementation is significantly delayed. The national implementing act (CSRD-UmsG) has not yet been passed. Until then, the old legal framework (CSR-RUG of 2017) applies.
What you should do now
Even if you are no longer required to report: your customers, banks and investors will continue to demand ESG data from you. Those who prepare their sustainability information in a structured manner for reporting now will ensure they remain capable of acting.
And for companies that remain subject to reporting requirements: now is the right time to prepare for the simplified ESRS. Fewer data points do not mean less work in setting up – but the requirements have become clearer and more practical.
Want to know if your company still falls under the CSRD? Glacier AI can help you with a gap analysis. Book your free demo with Rainhard now – glacier.eco