On Thursday, 13 November 2025, the European Parliament adopted a comprehensive Omnibus proposal that both simplifies sustainability requirements and sets a clear climate direction with a target of 90% CO₂ reduction by 2040 compared with 1990 levels.
For companies, this means less administrative burden in the short term – and a clearer direction for the green transition towards 2050.
An important part of the agreement is the opening for international climate credits, which will function as a supplement to – not a replacement for – actual emissions reductions.
What changes with the Omnibus proposal?
CSRD targeted at the largest companies
The number of companies within the scope of the CSRD will be reduced by 92%. Going forward, only companies that meet the following thresholds will be covered:
- At least 1,750 employees
- More than €450 million in turnover.
At the same time, the standards will be simplified, sector-specific reporting will become voluntary, and SMEs will be protected from having to provide large volumes of data to larger customers.
Due diligence (CSDDD) tightened – but for fewer companies
Only the largest companies will be covered going forward:
- At least 5,000 employees
- More than €1.5 billion in turnover.
The directive will also adopt a risk-based approach, strengthened national implementation and a shared digital EU portal with free templates and guidance to make compliance more practical and operational.
What does this mean for you and your business?
For most companies, the new proposals will mean less administration and fewer reporting requirements. At the same time, the focus will shift more clearly to actual results in areas such as:
- Energy consumption
- Use of materials
- Waste management
- Transport and logistics.
Large companies will need to prioritise the most significant risks in their supply chains, while SMEs will experience fewer data requests from their larger customers.
Timeline – what happens next?
The trilogue negotiations between the European Parliament, the Council and the Commission begin on 18 November. The aim is to reach final agreements before the end of 2025.
The 2040 target reflects the Parliament’s position and remains subject to further negotiations with the Council and the Commission.
How can Grant Thornton help?
We help companies navigate the new EU simplifications while strengthening their strategic sustainability efforts. Our services include:
- Optimising existing sustainability reporting
- Preparing for upcoming changes to CSRD and CSDDD
- Designing a risk-based due diligence approach
- Developing scenarios and a practical roadmap towards 2040.
If you would like a quick assessment of what the changes mean for your business, reach out to our ESG and Sustainability advisory team.