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European Parliament Approves Omnibus Rollback of EU Corporate Due Diligence Law

The overhaul confines obligations to only the largest firms, with compliance not due until 2029.

Overview

  • The Parliament voted 428–218 on December 16 to adopt final Omnibus I amendments that weaken the Corporate Sustainability Due Diligence Directive.
  • Coverage is cut roughly 70% to about 980 corporate groups, with national transposition now due by July 2028 and company obligations starting in July 2029.
  • New thresholds limit social and environmental reporting to firms with more than 1,000 employees and €450m turnover, while due diligence applies only above 5,000 employees and €1.5bn turnover from 2029.
  • Requirements for Paris-aligned climate transition plans were dropped, and plans to harmonise access to justice across member states were removed.
  • Core risk‑based human rights and environmental due diligence obligations remain across supply chains, as rights and green groups condemn the rollback and cite heavy lobbying and procedural failings flagged by the EU Ombudswoman.