European Parliament Approves Provisional Agreement Proposals on Sustainability Reporting and Due Diligence Requirements as Part of Omnibus Package

On December 9, 2025, the European Parliament reached a provisional agreement with the European Commission and European Council regarding the European Commission’s February 2025 omnibus package of proposals that would simplify the EU’s sustainability reporting requirements, including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation. On December 16, 2025, the European Parliament voted to approve the provisional agreement.

The provisional agreement outlines, among other things, the scoping requirements for the CSRD and the CSDDD.

Under the provisional agreement, EU entities employing an average of more than 1,000 employees and with a net annual turnover of over EUR 450 million will have to perform sustainability reporting under the CSRD. The CSRD’s requirements will also apply to non-EU entities that both generate net turnover in the EU of over EUR 450 million at the group level and have at least one EU subsidiary or branch generating turnover of more than EUR 200 million.

Regarding CSDDD, due diligence reporting will only be required for (1) large EU entities with more than 5,000 employees and a net annual turnover of over EUR 1.5 billion and (2) non-EU entities with over EUR 1.5 billion turnover in the EU.

The final text will have to be formally approved by the Council of the European Union. The directive will enter into force 20 days after its publication in the Official Journal of the European Union.

For more information, see the press release on the European Parliament’s Web site. Also see Deloitte’s August 21, 2025, Heads Up for more information about the omnibus package.