CSRD Omnibus ESRS Finalised: Mandatory Datapoints Cut 61%, Scope Threshold Raised to 1,000 Employees / €450M Turnover

The European Commission finalised the revised ESRS (European Sustainability Reporting Standards) on July 3, 2026, and they are now in a two-month parliamentary scrutiny period (extendable to four months) before entering into force. The key changes from the Omnibus package: mandatory datapoints reduced by more than 61%; total datapoints reduced by more than 70%; scope threshold raised to at least 1,000 employees and €450M in turnover (from approximately 250 employees); listed SMEs and financial holding companies removed from scope entirely; for non-EU companies, the trigger is €450M in EU revenue. Wave 1 companies (those that already reported under CSRD for FY2024) continue reporting but are not required to add new disclosures from the simplified ESRS for FY2025 and FY2026 — providing compliance breathing room while standards were being finalised. The revised ESRS apply from financial years beginning January 1, 2027. For law firms advising EU and multinational clients: the scope reduction is substantial but not unlimited — companies above the new thresholds remain fully in scope, and the ESRS (2026) standards are the compliance target for FY2027 reporting. The EFRAG non-EU VSME (Voluntary Sustainability Reporting Standard for non-EU companies) is in a 100-day public consultation until October 31, with final standards targeted for January 2027.