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Kiara Conings
Senior Executive | Business Consulting Services

In a surprising move on 22 October 2025, the European Parliament rejected the mandate for the proposed Omnibus Regulation, creating a pause in the EU’s sustainability reform agenda.  The proposal will now return to the plenary session on 11–13 November, where Members of Parliament will debate and vote on the package in full and possibly reopen parts of it for amendment. The rejection highlights growing political tensions around the future of EU sustainability legislation and raises critical questions about the direction of the European Green Deal. 

What happened at the vote?

Parliament voted against giving the green light to move the Omnibus compromise forward, meaning the proposal will undergo another round of discussion in November. This decision has added a layer of uncertainty to the legislative process. Instead of being fast-tracked, it now heads back to plenary, where it will be debated and voted on in full. A new deadline for amendments will be set, which means parts of the compromise could be reopened, potentially reshaping the proposal. This also risks delaying progress and unravelling agreements that had already been reached. 

What is the Omnibus Regulation?

Introduced by the European Commission on 26 February 2025, the Omnibus package is a simplification initiative aimed at easing compliance with the EU’s sustainability framework. 

It proposes amendments to three cornerstone laws of the European Green Deal:

1.
CSRD

Corporate Sustainability Reporting Directive

2.

EU Taxonomy Regulation

3.
CSDDD

Corporate Sustainability Due Diligence Directive

The main objective is to reduce reporting burdens, particularly for mid-sized companies, while maintaining consistency and competitiveness in the EU’s sustainability agenda. 

Key changes proposed

1.
CSRD

The Omnibus proposes a narrower scope for CSRD, limiting mandatory reporting to companies with: 

1000+
employees
€450
million in turnover

As a result...

80-90%
of companies would be removed from the directive’s scope as a result of this change.
Image
2.
EU TAXONOMY

  • Reduced scope aligned with CSRD thresholds. 

  • Gradual adoption through partial alignment. 

  • Materiality thresholds (e.g., 10% of turnover or assets). 

  • Simplified DNSH criteria and fewer reporting templates. 

3.
CSDDD

The directive’s scope is significantly reduced to companies with: 

5k+
employees
€1.5
billion turnover

These proposals were intended to shift the focus from the quantity of reporting to its quality and proportionality — an aim that will now be reconsidered as Parliament revisits the file in November. 

The upcoming plenary vote in November will be a critical moment.

  • If the compromise is approved, trilogue negotiations between the Commission, Parliament, and Council could begin before end of the year.
  • However, the earlier rejection has introduced uncertainty, and the outcome of the plenary vote remains far from guaranteed.  

In the meantime, businesses should focus on stability and preparedness:  

  • Stay on course with CSRD readiness and due-diligence programmes.
  • Invest in reliable data systems and governance, which remain critical under any scenario.
  • Expect continued scrutiny from investors, lenders and supply-chain partners on ESG performance, regardless of shifting legal thresholds. 

The bigger picture

The debate around Omnibus highlights the ongoing tension between simplification and ambition, and the need to ensure efficiency does not come at the expense of transparency and accountability. 


The November vote will not only determine the future of the Omnibus Regulation—it will signal the EU’s current stance on sustainability leadership. One thing is clear: what happens in the next few weeks will shape the EU’s sustainability framework for years to come.  

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