EU Omnibus I: Member states give final green light to scale back CSRD & CSDDD 

EU member states in the European Council approved an agreement under the “Omnibus I” simplification package to significantly reduce the number of companies covered by the CSRD and to scale back key elements of the CSDDD. The agreement keeps a 1,000-employee CSRD threshold but adds an additional €450m revenue threshold, and raises the CSDDD threshold to 5,000 employees and €1.5bn in revenue. It also removes the CSDDD obligation to prepare climate transition plans, eliminates the EU-wide liability regime, and caps penalties at 3% of global revenues. The CSDDD application timeline is delayed, with compliance required by July 2029 for companies in scope.

The Council vote was described as a largely formal stepafter the political agreement, meaning attention now shifts to implementation in national legislation, which will shape how the changes play out in practice. Read more.

The European Central Bank published a staff opinion on the revised ESRS, warning that several simplification measures introduced through the Omnibus process could “significantly reduce transparency for investors and other market participants.” The ECB highlighted fewer mandatory datapoints, the removal of voluntary disclosures, more flexibility on estimates, and reduced pressure for supplier data collection. They also suggested using revised ESRS as a basis for voluntary reporting rather than the current VSME standard for SMEs.

Even with simplification, the direction of travel for capital markets remains focused on decision-useful information. Companies should expect scrutiny around how simplifications are applied (e.g., exemptions, phase-ins, estimation choices) and whether disclosures remain credible for investors and lenders. Read more.

California: first corporate climate reports due 10th August, 2026

California’s Air Resources Board (CARB) approved initial regulations implementing the state’s climate reporting laws SB 253 (GHG emissions disclosure) and SB 261 (climate financial risk disclosure), setting 10th August, 2026 as the first-year disclosure deadline for corporate GHG emissions reporting. SB 253 applies to companies doing business in California with revenues over $1bn, requiring annual reporting on Scope 1, 2 and (later) Scope 3 emissions; Scope 1 and 2 are required first, with Scope 3 mandated from 2027. SB 261 remains subject to legal challenges; CARB stated that SB 261 reporting is currently voluntary due to an injunction pausing its implementation.

For large companies operating in the U.S., California becomes a practical compliance driver for emissions data systems, assurance readiness, and value chain data collection. Even where climate-risk reporting remains uncertain, emissions disclosure timelines are now anchored to a clear first deadline. Read more.

The UK government released finalized UK Sustainability Reporting Standards (UK SRS), aligned to the IFRS Foundation’s ISSB standards (IFRS S1 and IFRS S2). The government endorsed the standards for voluntary use while leaving open a path to future mandatory application, and noted ongoing FCA consultation for listed companies. The finalised UK standards remove explicit time references for certain transitional reliefs (including Scope 3 relief and “climate-first” relief), leaving timeframes to future legislation/regulators; voluntary reporters can use the reliefs provided they disclose that they are doing so.

UK SRS strengthens the direction of travel toward ISSB-aligned disclosures – and highlights how “voluntary” standards can quickly become market expectations, especially for listed companies. Multinationals may face growing pressure to align reporting across jurisdictions (EU, UK, U.S. state-level rules), even when requirements differ in detail and timing. Read more.