The EU has reached a provisional agreement to update sustainability reporting and due diligence rules under the Omnibus I package.

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The reform lightens regulatory pressure on smaller companies while holding large enterprises accountable for environmental and human rights impacts across their global value chains. Here’s what the updated requirements mean — and how Quizrr supports organizations navigating the new landscape.

The EU’s newly updated sustainability reporting and due diligence rules mark a significant shift in how companies must monitor, measure, and manage social and environmental impacts across their supply chains. The deal, part of the 2025 Omnibus I package, aims to reduce regulatory burden, improve clarity, and focus compliance efforts on companies with the greatest operational footprint.

New Sustainability Reporting Thresholds

Under the agreement, mandatory sustainability reporting now applies only to large companies that meet updated criteria:

• More than 1,000 employees, and
• More than €450 million in annual net turnover

This change significantly narrows the scope of companies required to report under the Corporate Sustainability Reporting Directive (CSRD), easing pressure on SMEs while still ensuring transparency for high-impact corporations.

Due Diligence Requirements for the Largest Companies

The agreement updates the Corporate Sustainability Due Diligence Directive (CSDDD), with obligations now limited to:

• Companies with over 5,000 employees, and
• Over €1.5 billion in global net turnover

These companies will be responsible for identifying, preventing, and mitigating human rights violations, child labour, forced labor, and environmental harm within their value chains. This includes suppliers, production sites, and business partners across global markets.

Changes to Reporting

The reform also introduces adjustments:

• Reporting requirements become more quantitative, enabling clearer sustainability metrics.
• Sector-specific reporting becomes voluntary, reducing administrative burden for smaller players.
• A new EU digital portal will provide templates, tools, and guidance to streamline compliance.
• Companies are no longer required to produce a Paris Agreement-aligned transition plan.
• Penalties for non-compliance will be set nationally, up to 3% of global net turnover.

How Quizrr Supports Companies Under the New EU Framework

At Quizrr, we believe that knowledge builds better business. As sustainability regulations evolve, companies need scalable solutions that:

• Build workforce awareness on human rights and responsible business conduct
• Provide real-time risk visibility across global production sites
• Support compliance with CSRD, CSDDD, and international labor standards
• Drive measurable improvements in social performance
• Strengthen supplier engagement and capacity-building

Through digital training, data-driven insights, and flexible learning rollouts, Quizrr empowers companies to meet new EU expectations while building resilient, ethical, and future-ready supply chains.

Next Steps in the EU Process

The provisional agreement now moves into the formal approval phase. Next steps: Votes in the Legal Affairs Committee on 11 December, followed by a vote in Parliament’s plenary later this month. These final steps will determine when the updated CSRD and CSDDD requirements officially enter into force and how quickly companies will need to align their sustainability reporting and due diligence practices.