Overview

• MEPs on the Legal Affairs Committee voted 17–6 (two abstentions) to scale back CSRD and CSDDD obligations for companies.
• CSRD would cover firms with at least 1,000 employees and €450 million in turnover, with simplified reporting and voluntary sector-specific standards.
• CSDDD would apply only to companies with more than 5,000 employees and €1.5 billion in turnover, including non‑EU firms with equivalent EU turnover.
• An EU‑level civil‑liability regime was dropped, leaving liability to national law while retaining maximum fines of 5% of global turnover and keeping transition‑plan requirements.
• The package adopts a risk‑based approach that limits information requests to business partners to plausible risks, and the full Parliament is expected to vote on October 20 before negotiations with EU governments begin on October 24 if approved.