Omnibus I in the Official Journal: The regulatory framework is in place
On 24 February 2026, the Council of the EU adopted the final text of the Omnibus I Directive (EU) 2026/470. It was published in the Official Journal on 26 February 2026 and is scheduled to enter into force on 18 March 2026.
The directive amends the CSRD, the CSDDD, the EU Accounting Directive and the Statutory Audit Directive in a single legal act.
CSRD Update: New Thresholds, New Timeline
The Omnibus I Directive fundamentally changes the CSRD requirements. The user base is reduced by an estimated 80–90%. What exactly changes?
- New threshold values: In the future, only companies with more than 1.000 employees AND more than €450 million in net revenue (cumulative) will be required to report.
- Capital market-oriented SMEs: Completely removed from the scope of application.
- First application: Financial year 2027 (reports in 2028).
- Examination level: Limited Assurance only, permanently – no transition to Reasonable Assurance.
- Value Chain Cap: SMEs in the value chain must provide information to the maximum extent required by the voluntary VSME standard.
- Electoral rights of the member states: Wave 1 companies that fall below the new thresholds may be exempt from reporting requirements for fiscal years 2025 and 2026.
- Implementation deadline: March 19, 2027.
ESRS: Financial regulators warn of persistent data gaps
In February 2026, ESMA, EBA, and ECB published their opinions on the simplified ESRS presented by EFRAG on December 3, 2025. The number of data points is to be reduced by approximately 61–70%. Key statements from the supervisory authorities:
- ESMA (17 February 2026): The simplified ESRS are only "partially suitable" to guarantee investor protection and financial stability. Permanent relaxations create blind spots in quantitative data.
- EBA (17 February 2026): Relief measures should be limited to three years (until fiscal year 2029). The elimination of the GHG intensity ratio (E1-6) is particularly problematic for banks.
- ECB (18 February 2026): The simplification significantly reduces transparency for investors. The combination of fewer data points and a smaller reporting pool exacerbates the data availability problem.
CSDDD: Severely limited scope of application
The CSDDD is undergoing profound content changes due to the Omnibus I Directive. The user base is decreasing by approximately 70%. What exactly is changing?
- New threshold values: More than 5.000 employees AND more than €1,5 billion in worldwide net sales (previously: 1.000 employees / €450 million).
- Uniform application start date: July 26, 2029 (instead of a three-stage introduction).
- Climate transition plans: The obligation was completely abolished.
- Civil liability: EU-wide regulation removed – responsibility lies with the 27 national legal systems.
- Fines: Capped at a maximum of 3% of worldwide net sales (previously: at least 5%).
- Test cycle: Extended from annually to every five years.
- Implementation deadline for member states: July 26, 2028.
Germany: CSRD implementation still pending
More than 18 months after the implementation deadline, Germany has still not transposed the CSRD into national law. The European Commission's infringement proceedings have been underway since September 2024. The Federal Ministry of Justice and Consumer Protection (BMJV) had awaited the formal adoption of the Omnibus Directive. According to a DRSC report dated February 26, 2026, deliberations in the Bundestag committees will now continue.
February 2026 marks a regulatory turning point. With the entry into force of the Omnibus I Directive on March 18, the scope of application, reporting content, and deadlines for CSRD, CSDDD, and ESRS will fundamentally change. At the same time, statements from EU financial supervisory authorities indicate that this simplification is not without risks to data quality and investor transparency.
INSIRE helps companies to
- to assess the new thresholds and reporting obligations in relation to their specific situation,
- To adapt materiality analyses and reporting processes to the simplified ESRS,
- to integrate the CSDDD requirements into existing compliance structures at an early stage,
Learn more about Sustainability ESG here.
