CSRD And CSDDD Version 2.0 – The EU's Sustainability Framework Redefined

As reported in ourprevious briefing, the Sustainability Omnibus finally reached its destination last week, when the European institutions agreed on changes to the Corporate Sustainability Reporting Directive ("CSRD") and the Corporate Sustainability Due Diligence Directive ("CSDDD"). The text was subsequently approved by the Council's Coreper committee on 10 December, and on 16 December, the Parliament approved the text in its plenary session. Some sources are noting that final publication of the text will be in March 2026, with entry into force twenty days later, but importantly, no further substantive changes are expected.

The agreed Omnibus text will take many companies out of scope, and the impacts across the economy will undoubtedly be fewer, but it is worth being aware of what the changes mean in practice, where uncertainty remains, and how businesses might respond in the absence of regulatory drivers for sustainability reporting and due diligence.