The European Parliament has endorsed amendments that further weaken key corporate sustainability regulations, including the Corporate Sustainability Due Diligence Directive (CSDDD) and related reporting obligations. Under the revised rules, only companies with at least 5,000 employees and €1.5 billion in annual revenue will be subject to the requirements — a sharp increase from the original threshold of 1,000 employees and €450 million turnover. The decision, backed by centre‑right and far‑right lawmakers, significantly reduces the scope of corporate accountability across the EU.
Critics argue the rollback limits oversight of supply chains, allowing many companies to avoid investigating environmental harms or human‑rights violations beyond their immediate partners. The changes could weaken efforts to prevent deforestation, labor exploitation, and ecological damage linked to corporate operations. Environmental and human-rights groups warn that the move undermines the EU’s global leadership on sustainability, leaving vulnerable communities and ecosystems exposed, and sending a concerning signal to international markets about the seriousness of European climate and social governance commitments. More