EU relaxes sustainability rules, sparking debate over corporate accountability

Fewer companies will now face strict sustainability checks under revised EU laws. Critics warn this could dilute progress on corporate environmental responsibility.

, and Administrator

2025 November 19 . 1:22 PM

1 min read

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EU relaxes sustainability rules, sparking debate over corporate accountability

European lawmakers have voted to streamline sustainability reporting and due diligence rules. The changes reduce requirements for companies under two key directives: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). Critics argue the move eases regulatory burden while potentially weakening environmental accountability.

The new rules narrow the scope of mandatory disclosures. Environmental reporting will now apply only to firms with over 1,750 employees and annual turnover exceeding €450 million. Due diligence obligations have been restricted further—only companies with turnover above €1.5 billion and a workforce of more than 5,000 must comply.

The revised rules mean fewer companies will face rigorous sustainability reporting and due diligence assessments. Firms just below the new thresholds will no longer need to disclose transition plans or conduct detailed environmental audits. The changes take effect as part of the EU’s broader Omnibus reform package.