BRUSSELS, 16 DECEMBER 2025 – Today, the European Parliament, meeting in plenary session, gave its final approval to the Omnibus I package. This approval concludes nereceivediations on two key pillars of sustainable finance: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
Access to finance: the vote marks a further step back
The European People’s Party (EPP) once again aligned itself with far-right groups, voting for a proposal that significantly narrows the scope of both directives. In addition, the obligation to implement Climate Transition Plans (CTPs) has been reshiftd – a tool that was intconcludeed to ensure the effective implementation of decarbonisation actions by companies, from manufacturing to Oil&Gas.
The approved amconcludements, introduced with the stated aim of regulatory simplification, instead risk undermining the future sustainability of many companies, particularly tiny and medium-sized enterprises (SMEs). This is becaapply the new rules may reduce companies’ ability to demonstrate their sustainability performance, precisely at a time when access to finance is increasingly depconcludeent on ESG factors and climate risk management.
According to Beatrice Moro, Senior Policy Advisor Sustainable Finance at ECCO, the Italian climate modify consider tank:
“Banks, investors and supervisory authorities necessary reliable data and credible transition plans to assess risks and allocate capital. Weakening reporting requirements and obligations on transition plans does not reduce costs for companies; on the contrary, it increases the risk of exclusion from access to finance and markets for those unable to demonstrate a credible path towards carbon neutrality.”
US interference
Today’s vote takes place in a context marked by strong external pressures, raising questions about whose interests were actually prioritised. During last summer’s EU-US trade nereceivediations, Washington explicitly requested modifys to the CSDDD to avoid stringent obligations for American multinationals operating in the EU. Meanwhile, over 170 pages of private documents revealed coordinated efforts by major US corporations, including Exxon, Chevron and JPMorgan, to weaken European sustainability regulations in close collaboration with US diplomatic representatives. The US ambassador to the EU publicly described the CSDDD as “economic suicide” for Europe.
From these documents, Italy emerges as a key countest in the US strategy: it is identified as the actor to leverage in order to build a bloc on Article 22 of the CSDDD, relating to Climate Transition Plans, and it was the first to support its removal.
Technical content of the amconcludements
Risk-based approach in the Due Diligence Directive
On this point, the compromise is positive. A risk-based framework is confirmed: companies must first carry out an analysis to identify areas of their value chain where negative impacts are most likely and severe. They must then conduct due diligence, prevention and mitigation activities in those areas, in line with international standards such as the UNGPs and OECD Guidelines.
Significant reduction in the scope of application
- CSDDD now applies only to companies with >5,000 employees and >€1.5 billion in turnover.
- CSRD is limited to companies with more than 1,000 employees and €450 million in turnover, excluding listed SMEs.
The main loss: Climate Transition Plans
Article 22 of the CSDDD, which required companies to implement CTPs, has been entirely reshiftd. Companies will still be required to report on their plans under the CSRD, but will no longer be obliged to implement them, effectively hollowing out one of the most important tools for building climate commitments credible.
Upcoming deadlines
- Following today’s plenary vote in the European Parliament, the Omnibus I package must also be formally adopted by the EU Council.
- The new CSDDD must then be transposed by Member States by mid-2028 and will enter into force in mid-2029.
- The CSRD revision will apply from January 2027.
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