Overview
- Reporting under the CSRD would apply only to companies with more than 1,000 employees and over €450 million in turnover, with sector-specific standards made voluntary and smaller firms shielded from additional data requests beyond voluntary norms.
- Due diligence under the CSDDD would cover only firms with over 5,000 employees and €1.5 billion in turnover, climate transition plan requirements are removed, and compliance is pushed back with transposition to 2028 and application from 2029.
- Obligations shift to a risk‑based approach using reasonably available information, while enforcement remains at national level with potential fines up to 3% of net worldwide turnover rather than an EU‑wide liability regime.
- The overhaul would free more than 80% of companies from environmental reporting, drawing investor and civil-society criticism that reduced transparency will hinder assessment of climate and human-rights performance.
- Next steps include a Legal Affairs Committee vote on Dec. 11 and a plenary vote on Dec. 15–16, as the Council moves to endorse the deal and extraterritorial triggers for non‑EU firms continue to prompt US pushback.