EU Omnibus Changes: How CSRD and CSDDD Impact Supply Chain Due Diligence

Did you know European sustainability regulation has entered a new phase? A new set of updates known as the EU Omnibus has now been finalised. It’s reshaping how companies approach sustainability reporting and supply chain due diligence under CSRD and CSDDD. For many organisations, this feels like a turning point.

Earlier, sustainability regulation often felt like something running alongside the core business. Rules that once promised extensive reporting and scrutiny are now being refined. These changes influence how sustainability and supply chain transparency work in reality. They bring some fresh clarity to business planning.  

While the details are shifting, the focus on environmental protection and human rights has not changed. That’s why understanding the EU Omnibus updates and what they mean for supply chain due diligence is so important.

What Is the EU Omnibus and Why It Matters?

The omnibus changes are designed to simplify sustainability reporting and due diligence obligations. They are built on the two major requirements under EU directives; the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The original ambition behind both was clear. To bring environmental and human rights considerations into business decisions.

When businesses were facing a complex and sometimes overlapping set of requirements. The Omnibus package steps in to ease administrative burdens while keeping the main goals intact. But even with simplification, companies still need to understand how these rules apply, what they must do, and how to prepare for changing expectations.

CSRD: Reporting That Reflects Reality

In simple words, the Corporate Sustainability Reporting Directive (CSRD) requires companies to share credible information about their sustainability performance. This can include topics around environmental, social, and governance.

The goal is to make sustainability reporting more consistent and easier to compare across the EU.  Before the Omnibus adjustments, CSRD was expected to cover a wide range of large and mid-sized firms. The directive is set to reshape how companies build their sustainability narratives and share data with stakeholders.

The key aspects of CSRD have changed in a way.

• Companies required to comply have been reduced by revising employees and turnover thresholds.
• Smaller firms will only provide voluntary sustainability information unless they meet specific criteria. 
• Sector-specific reporting requirements can be optional, giving organisations more breathing space. 

The result is a CSRD framework that still brings transparency but allows organisations to focus their efforts on where they can make the most difference.

CSDDD: Due Diligence After the Omnibus

The Corporate Sustainability Due Diligence Directive (CSDDD) focuses on how organisations identify and act on risks within and beyond their direct operations. From the start, it’s purpose was to make due diligence an integral part of how companies look after human rights and environmental outcomes.

That purpose remains unchanged under the EU Omnibus updates. The emphasis on responsible behaviour has not been reduced. However, some practical elements have shifted:

• The employee and turnover thresholds for CSDDD application have been raised significantly.
• Civil liability will be handled at the member state level rather than through a single EU-wide approach. 
• Implementation timelines have been extended, giving organisations more time to prepare. 

What this means on the ground is that organisations still subject to CSDDD need to build thoughtful due diligence processes that capture risks and impacts meaningfully. The directive sits alongside CSRD and other expectations.

Why Supply Chain Due Diligence Still Matters?

Despite the changes to CSRD and CSDDD, the importance of doing supply chain due diligence remains high. It no longer sits on the edge of compliance. It still drives core operational discipline.

Due diligence shows what is really happening across the supply chain. It brings insights into sourcing choices, labour conditions, environmental exposure, and governance practices. It also helps organizations see how risks are identified, how priorities are set, and how issues are handled when they arise. 

This gives due diligence a very practical role. It becomes less about preparing a single directive and more about building a risk-based approach. To be effective, it needs to be supported by assurance practices designed.

What the EU Omnibus Means for Business Planning?

For organisations responding to these updates, clarity comes first. They need to understand exactly how the updated CSRD and CSDDD requirements apply to them. These rules evolve and will be interpreted over time.

A practical way forward includes:

• Reviewing current sustainability reporting and aligning it with the latest CSRD requirements.
• Assess existing supply chain due diligence frameworks to ensure they capture key risks.
• Consider how risk data is gathered, validated, and communicated internally and externally.
• Engage partners and suppliers in transparency and ongoing improvement of dialogues.

Taking this approach helps organisations treat compliance as a strategic asset.

The Role of a Risk Management Partner in Navigating Omnibus Changes

These shifts in CSRD and CSDDD highlight a larger truth about modern regulatory environments; which no organisation works in isolation. External expertise and insight can help bridge the gap between intention and execution.

This is where a risk management partner is your support system. Such a partner brings perspective rooted in structured assessment, deep regulatory understanding, and experience across complex transitions.

Whether it’s refining data collection for CSRD reporting or embedding meaningful supply chain due diligence practices, risk management services help organisations translate frameworks into workflows, and risks into manageable priorities.

Turning Regulatory Change into Strategic Strength

There is a narrative in every regulatory shift. One view treats rule as hurdles. Another sees them as invitations to improve how business works. The EU Omnibus changes to CSRD and CSDDD are now part of that narrative.

They guide organisations toward clearer reporting, thoughtful due diligence, and better visibility across supply chains. They also emphasise that regulatory frameworks and business values are increasingly connected.

Organisations need to approach these shifts with curiosity and purpose. You can start by leaning on risk management expertise when needed. This way one can strengthen how they identify issues, communicate performance, and make informed choices. The result is not just compliance. It is readiness for what comes next.