This update outlines the key regulatory changes across the EU, UK and Jersey and explains their practical implications for affected organisations. It is designed to help businesses assess whether they remain in scope and understand how compliance expectations are shifting.

At a glance

• Omnibus I approved, reshaping EU sustainability law: The EU has approved Omnibus I, significantly amending the CSDDD and CSRD and fundamentally narrowing their scope.
• Higher thresholds and reduced obligations under the CSDDD: The CSDDD will apply only to very large EU and non‑EU organisations, with scaled‑back due diligence requirements, capped fines, and no obligation to adopt climate transition plans.
• CSRD reporting scope substantially reduced: Many organisations will fall out of scope from financial years starting on or after 1 January 2027, with new exemptions and strengthened rights to withhold commercially sensitive information.
• EU focus on forced labour and deforestation continues: Guidance on the EU Forced Labour Regulation is expected in 2026, while revisions to the Deforestation Regulation aim to simplify due diligence and delay application until December 2026.
• Diverging approaches in the UK and Jersey: Although calls for stronger UK forced labour legislation have intensified, reform appears unlikely in the near term; meanwhile, Jersey has announced plans to introduce new modern slavery legislation.