Overview
- Negotiators from the European Parliament and EU member states agreed in Brussels to limit the law to firms with at least 5,000 employees and €1.5 billion in global turnover, up from 1,000 and €450 million.
- EU-wide civil liability was removed, fines were capped at up to 3% of a company’s global revenue, and the mandate to produce climate action plans was dropped.
- Companies will no longer be required to monitor entire supply chains but will focus checks where they see higher risk and may rely on information that is reasonably available from suppliers.
- Member states are to transpose the rules by July 26, 2028, with affected companies expected to comply from July 2029.
- A right-leaning majority paved the way for the rollback, with Chancellor Friedrich Merz and business groups praising reduced bureaucracy as NGOs and left-leaning MEPs warn of weaker remedies for victims; formal approval by Parliament and Council is still pending.