MEPs back Omnibus I simplification of EU sustainability reporting rules

The European Parliament adopted, by 382 votes to 249, a position simplifying EU sustainability reporting and due diligence under the Omnibus I package, raising reporting thresholds to 1,750 employees and €450 million turnover. The narrowed scope reduces compliance burdens for Indian exporters and subsidiaries previously caught by broader EU thresholds.

Members of the European Parliament adopted a position simplifying corporate sustainability reporting duties under the Omnibus I package by 382 votes to 249, with 13 abstentions. Sustainability reporting will apply only to businesses with over 1,750 employees and €450 million turnover, with fewer qualitative details required and sector-specific duties made voluntary. Due diligence requirements apply only to the largest corporations, with a much higher threshold of 5,000 employees and €1.5 billion turnover, and a Paris Agreement transition plan is no longer mandatory for these firms.

European companies and multinational corporations, including non-EU firms operating in the EU such as Indian exporters and subsidiaries, are affected by the raised thresholds that remove many from mandatory environmental reporting. The largest corporations face a focused risk-based due diligence approach. Non-compliant companies now face liability at national rather than EU level but must provide victims full compensation for damages from their actions. MEPs also requested a new digital portal offering free access to templates and regulatory guidelines.

Affected businesses should determine whether they exceed the 1,750 employees and €450 million reporting thresholds or the 5,000 employees and €1.5 billion due diligence thresholds to assess their obligations. Companies should monitor negotiations with EU governments, which started November 18, aiming to finalise the legislation by end of 2025. Firms should watch for the requested digital portal providing free templates and guidelines, and note that liability for due diligence breaches shifts to the national level with full victim compensation required.

Key figure — Reporting threshold: over 1,750 employees and €450 million turnover for mandatory sustainability reporting