Overview
- Lawmakers approved a watered‑down position on the EU’s sustainability rules in a 382–249 vote, advancing a stance that would exempt many companies and ease obligations before talks with EU governments.
- The Parliament’s approach would simplify and reduce CSRD reporting standards and bar large companies from demanding additional sustainability data from smaller suppliers.
- Due‑diligence duties under CSDDD would shift toward direct contractors rather than full value chains, with penalties set nationally and climate‑transition planning requirements diluted.
- The package is not final, with Parliament set to negotiate a compromise text with EU member states to determine the scope and timing of any changes.
- Despite regulatory softening, investors, customers and trading partners are increasing requirements for third‑party‑verified sustainability data, with PwC reporting 66% of firms boosting reporting resources and vendors promoting ERP/AI tools to deliver audit‑ready metrics.