Following complex negotiations, the EU has agreed substantive changes to sustainability reporting and due diligence rules.

By Paul A. Davies, Michael D. Green, James Bee, and Toon Dictus

Key Points:

• Major changes to the CSRD and CSDDD include narrowed scope, removal of the climate transition plan obligation, and targeted exemptions and timing reliefs.
• The final text reflects compromises across the EU institutions.

On 16 December 2025, the European Parliament (Parliament) adopted the Detailed Omnibus Directive, which is part of the first Omnibus simplification package. The adoption is likely to result in substantive amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

For more information, see this Latham article.