EU CSDDD After Omnibus: Threshold Raised to 5,000 Employees and €1.5B Turnover — ~70% Fewer Companies In Scope; Civil Liability Regime Removed

The EU Corporate Sustainability Due Diligence Directive (CSDDD), as amended by the Omnibus I simplification package (Directive (EU) 2025/794 and Directive (EU) 2026/470), has been materially narrowed. The final threshold for EU companies is more than 5,000 employees and €1.5 billion net worldwide turnover — a cumulative AND test that removes approximately 70% of the companies originally in scope (estimated at 900 very large companies, down from roughly 5,000). For non-EU companies, the threshold is €1.5 billion net turnover in the EU. Key simplifications: (1) removal of the requirement for a climate transition plan within the due diligence framework; (2) no harmonised EU-wide civil liability regime — civil liability is governed by national law; (3) penalties capped at 3% of global turnover (down from 4%); (4) no mandatory full supply chain mapping — companies focus on areas with the most likely or severe adverse impacts; (5) the one-year delay through the "stop-the-clock" mechanism shifted implementation to July 2029. In-scope companies may not demand sustainability data beyond the VSME standard from value-chain partners with fewer than 1,000 employees. Germany suspended LkSG reporting obligations (except serious violations) until the CSDDD applies. For supply chain and human rights counsel: the CSDDD simplification makes the legislative standard less onerous for clients — but it does not reduce the due diligence expectation that courts and civil society will apply to companies already conducting voluntary value-chain human rights assessments. The TotalEnergies appeal will be decided under France's Duty of Vigilance Law, which inspired the CSDDD but is not being simplified.