EU Parliament’s Legal Affairs Committee (JURI) has approved significant rollbacks to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).
The new proposal raises thresholds to 1,000 employees and €450 million in revenue for CSRD, and 5,000 employees and €1.5 billion in turnover for CSDDD, while removing civil liability and granting new exemptions for financial holdings and listed subsidiaries.
The revisions follow strong lobbying from business groups and member states such as France and Germany, who argued that the rules risked undermining competitiveness and investment.
However, NGOs and sustainability advocates warn that these changes could weaken corporate transparency and EU leadership on climate and human rights.
The proposals now move to trilogue negotiations between the Parliament, Council, and Commission, with a final agreement expected by year-end and implementation unlikely before 2026.
If adopted, the move would mark one of the largest retreats from the EU Green Deal, signaling a shift from ambition to pragmatism in sustainability regulation.
