EU Parliament votes to weaken corporate sustainability laws

The European Parliament voted to significantly scale back the EU’s corporate sustainability laws, simplifying both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). CSRD will now apply only to companies with over 1,750 employees and €450 million revenue, while CSDDD targets companies with more than 5,000 employees and €1.5 billion revenue. The changes remove the Paris Agreement-aligned transition plan requirement and shift CSDDD liability to national levels. These reforms reduce the number of affected companies to about 5% of the original scope, drawing criticism from environmental groups like WWF, who see it as a setback for climate and nature protection. Negotiations with the European Council will continue to finalize the laws in 2025.​
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