EU Omnibus update – draft report published by Jörgen Warborn MEP and EFRAG simplified ESRS exposure drafts

A step closer to the Omnibus I

On 12 June 2025, Jörgen Warborn MEP, the chief negotiator for the omnibus simplification for sustainability reporting and due diligence, published his position on proposed amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy. The draft report represents his ambitions for amendments to the CSRD, CSDDD and EU Taxonomy and is not agreed text of the Parliament.

His draft reflects his priorities, we highlight key points below:

• Aligning and raising the scope thresholds for CSRD, CSDDD and the EU Taxonomy to €450 million net turnover and 3,000 employees worldwide (the Commission had suggested 1000 employees and either a net turnover above €50 million or a balance sheet total above €25 million); 
• Removing requirements for mandatory climate transition plans in CSDDD and making them voluntary in CSRD, aligned with global standards; 
• Limit CSDDD to “tier 1 approach” – focus due diligence on direct business partners; 
• Under CSRD: full subsidiary exemption where a parent company already publishes group-wide sustainability data; and 
• Prevent gold-plating by Member States who might wish to implement more onerous standards or align with existing laws. 

The draft reflects the author’s view and is yet to be agreed with the other parties represented in the European Parliament. It is likely to be highly debated as it includes further “simplifications” compared with Commission’s proposal published on 26 February and as discussed further here. 

According to Responsible Investor, the deadline for MEPs to table amendments to the Commission’s proposal text is 27 June 2025.

EFRAG timing update on simplified ESRS

In a JURI committee meeting on 5 June 2025 (discussion from 10:38 onwards), Chair of EFRAG Sustainability Reporting Board, Patrick de Cambourg updated the committee on the progress of the European Sustainability Reporting Standards (ESRS) revisions. He confirmed:

• EFRAG will deliver a written update on EFRAG’s work to the Commission by 20 June 2025; 
• revisions to the ESRS will be based and rely on input from companies and stakeholders who have been confronted with implementing ESRS already; 
• revision is based on the current text of the omnibus proposals. 

He confirmed they have already defined the simplification levers and gathering evidence. They are currently drafting the exposure drafts and a first draft of the simplified ESRS will be released mid-June and the second draft in mid-July. A short public consultation is expected in the last week of July to September. Final delivery of the simplified ESRS are expected in October 2025. 

Omnibus-related dates for your diary (subject to change)

Week commencing 16 June - Council of the European Union may discuss the omnibus simplifications in a Committee of Permanent Representatives 

Mid-June – EFRAG due to release a first exposure draft of the simplified European Sustainability Reporting Standards (ESRS) based on the Commission proposal 

20 June – EFRAG expected to report to the Commission 

24 June – omnibus report authored by Jörgen Warborn to be presented in JURI Committee within the European Parliament 

24 June – Council of the European Union meeting agenda suggests omnibus may be discussed (though Responsible Investor suggests that agreement is needed at Coreper II level in the week commencing 16 June for this to go ahead) 

27 June – according to Responsible Investor this is the deadline for MEPs to table amendments to the Commission’s proposal text 

Mid-July – EFRAG due to release a second exposure draft of the simplified ESRS 

July to September – short public consultation on the exposure draft of the simplified ESRS expected 

September – European Parliament is hoped to agree on final negotiating position of the omnibus simplifications for sustainability reporting and due diligence 

October – final delivery of the simplified ESRS expected 

October – European Parliament plenary voting and JURI committee meeting tentatively tabled according to Responsible Investor

Following agreement on the text at the European Parliament, it is expected that trilogue negotiations between the Parliament, Council and Commission will commence to finalise the legislative text.

Stay tuned for further updates on CSRD, CSDDD and the omnibus simplification package. 

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This note is intended to be a general guide to the latest ESG developments. It does not constitute legal advice.

Authored by Rita Hunter, Emily Julier, and Julia Cripps.