EU Agreement on Omnibus I Simplification Package Eases Reporting Burden for Industry

Designed to simplify and harmonise sustainability and due diligence reporting across the EU, the agreement aims to remove redundant requirements, ease compliance for SMEs, and foster a more favourable business environment. This development is part of the Commission’s broader agenda to reduce administrative burdens by 25% overall and 35% for small and medium-sized enterprises.

CSRD Scope Reduced to Cut Costs

Central to the package is a reduction in the scope of the CSRD and related changes to the European Sustainability Reporting Standards (ESRS). These adjustments are expected to significantly lower compliance costs for in-scope companies by reducing reporting obligations and streamlining disclosure processes.

The Commission stated that these updates would “generate significant cost savings” for companies that remain within the scope of the CSRD while helping to align sustainability reporting across Member States without compromising regulatory intent.

CSDDD Streamlined for Global Value Chains

Equally impactful are revisions to the CSDDD, which now eliminate unnecessary complexities and reduce the compliance burden for companies operating across global value chains. The revised directive retains its core focus on mitigating adverse environmental and human rights impacts but with fewer administrative hurdles.

By making due diligence expectations clearer and more targeted, the new rules aim to drive sustainability across sectors while allowing businesses to focus resources on implementation rather than paperwork.

Implications for Industry Stakeholders

These reforms have implications beyond large corporations. Businesses throughout the chemicals and manufacturing ecosystems—including suppliers, downstream users, and compliance consultants—stand to benefit from reduced documentation requests and more predictable regulatory requirements.

Notably, smaller companies will be better protected from excessive information demands. At the same time, the changes offer flexibility for firms that remain subject to core due diligence mandates, supporting innovation and efficient resource allocation.

The agreement also aligns with the EU’s efforts to foster competitiveness and unlock billions in additional investment capacity, as noted in the Commission's simplification strategy initiated earlier in 2025.

Next Steps and Implementation Timeline

The trilogue agreement now awaits formal approval by the European Parliament and the Council. Once adopted, the amendments will be published in the Official Journal of the EU and take effect on the day of publication.

For companies operating within the EU regulatory framework, now is the time to reassess compliance systems, anticipate transitional requirements, and prepare for implementation.