After delays, failed agreements, and significant political back-and-forth, the EU Parliament finally reached a negotiating position on Omnibus. The consensus comes as an alliance between the center-right and far-right consolidated, providing enough votes to adopt the position. A recent Morrison Foerster memo discusses Parliament’s stance on the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD):
“Overall, the Parliament’s stance narrows the scope of both directives, softens liability, and simplifies disclosure requirements. It aligns closely with the Council’s June 2025 mandate (see our Client Alert from 7 July 2025), increasing the likelihood of an expedited trilogue agreement in 2026. While simplification reduces compliance burdens, it also introduces new interpretive uncertainties. Businesses should prepare now to adapt compliance strategies, anticipating further adjustments during trilogue negotiations.”
While the negotiating position raises scoping requirements significantly and cuts substantive portions of both laws, one interesting requirement remains: in-scope non-EU companies will still be required to comply with both the CSRD and CSDDD. This is surprising given the immense pressure the US has exerted in trade negotiations to kill these extraterritorial provisions. We’ll dig into the specifics of how these laws will be changing once trilouges are complete and the Council, Parliament, and Commission come to an agreement. Such an agreement is expected in early 2026.
Our members can learn more about the CSRD here and the CSDDD here.
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