The Corporate Sustainability Reporting Directive (CSRD; Directive (EU) 2022/2464) has significantly reshaped sustainability reporting in the European Union by introducing mandatory ESG disclosures aligned with financial reporting requirements. Entities within the scope must prepare a sustainability statement in accordance with the European Sustainability Reporting Standards (ESRS).

In 2026, the EU introduced the Omnibus package, amending the CSRD and related regulations. The objective is to simplify requirements while maintaining transparency and comparability.

Key changes introduced by the Omnibus package

1. Reduced scope of application

The scope of the CSRD has been significantly narrowed. The revised framework, primarily applies to the largest market participants:

EU-based companies:

- More than 1,000 employees, AND

- Net turnover exceeding EUR 450 million

Non-EU groups operating in the EU:

- More than EUR 450 million net turnover in the EU, AND

- At least one EU subsidiary or branch with over EUR 200 million net turnover

2. Value chain limitations (Value chain cap)

The Omnibus package introduces a value chain cap restricting the ESG data that can be requested from smaller business partners. Companies within the scope of the CSRD may only request sustainability data from value chain partners with fewer than 1,000 employees if it is explicitly included in the Voluntary reporting standard for SMEs (VSME) standard.

3. Simplification of ESRS and EU Taxonomy requirements

The Omnibus package also includes a revision of the ESRS framework, which is expected to be adopted by the European Commission in June 2026. The revision is expected to reduce the number of mandatory data points and streamline reporting.

In parallel, the 2026 amendment of the EU Taxonomy aims to simplify reporting obligations and reduce administrative complexity for in-scope companies.

What does this mean in practice?

Companies are expected to establish robust data collection and reporting systems that ensure consistent, traceable, and audit-ready sustainability information, alongside transparent disclosure.

In practice, companies are required to:

Identifying and assessing their impacts on the environment and society, as well as related financial risks and opportunities across the short, medium, and long term, through a double materiality assessment (DMA).
Preparing ESRS-compliant sustainability statements.
Collecting value chain data, in line with the value chain cap..
Ensuring data is consistent, verifiable, and audit-ready.
Publishing the sustainability statement in European Single Electronic Format (ESEF) compliantdigital format, alongside financial statements.

How can BDO support you?

1. Double materiality assessment (DMA)

Conducting ESRS-aligned double materiality assessments.

2. Data architecture and collection processes

Designing ESRS-compliant data structures and reporting workflows.

3. Sustainability statement preparation

Preparing ESRS-compliant sustainability statements.

4. Assurance readiness and audit support

Supporting clients throughout the external assurance process.

Benefits of CSRD readiness

Beyond regulatory compliance, CSRD readiness strengthens risk management, improves transparency towards investors and financial institutions, and supports the continuity and resilience of key business relationships across value chains.

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