EU Plans Major Rollback of Corporate Sustainability Rules

Leaked draft reveals proposed cuts to environmental and supply chain reporting requirements for businesses under new omnibus legislation.

The European Commission's upcoming omnibus bill proposes reducing the scope of sustainability reporting requirements for businesses.
Under the draft, only companies with more than 1,000 employees and €450 million in turnover would be required to comply with the Corporate Sustainability Reporting Directive (CSRD).
Proposed changes to the Corporate Sustainability Due Diligence Directive (CSDDD) would limit supply chain due diligence to direct suppliers and reduce monitoring frequency.
The bill also suggests delaying implementation timelines for both the CSRD and CSDDD, with some requirements pushed back to 2027 or later.
Critics argue the proposed changes weaken efforts to address climate change and human rights abuses, while proponents claim they reduce unnecessary burdens on businesses.