US EditionEU Endorses Proposal for Environmental Deregulation
EUROPEAN UNION, JUN 24 – EU Council raises thresholds for sustainability rules, reducing affected companies from nearly 50,000 to under 1,000 to ease compliance and boost competitiveness, officials said.
- On June 23, 2025, the Council of the European Union endorsed a mandate to simplify sustainability reporting and due diligence rules, aiming to reduce regulatory burdens for businesses.
- Following months of intense debate, EU institutions and stakeholders pushed to reduce regulatory costs for businesses amid concerns that existing sustainability rules hinder EU competitiveness, prompting the Council to act.
- Analysis reveals that thresholds for CSDDD rose to 5,000 employees and €1.5 billion turnover, reducing affected firms from nearly 50,000 to under 1,000.
- Following the agreement, the obligation to adopt climate transition plans is delayed by two years, with the transposition deadline extended to July 2028, drawing mixed reactions from stakeholders.
- Negotiations now move to, with the European Parliament expected to finalize its stance by the end of 2025, setting the stage for final legislation.
11 Articles
11 Articles
The EU needs a smarter fix to onerous and overlapping sustainability reporting requirements
The EU's proposed Omnibus Directive aims to reduce sustainability monitoring burdens – but without deeper reform, it risks weakening the very agenda it set out to simplify and support.
The EU’s CSRD and CSDDD Compliance Playbook Is Being Rewritten (Again)
European policy-makers are moving swiftly to scale back the scope and burden of corporate sustainability reporting. Specifically, in recent weeks, two parallel developments—one political, the other technical—have introduced further modifications to the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) frameworks. These developments signal that while the EU contin
European Council weighs in on scope of new sustainability law
Save Pressure has increased to reduce the number of European companies subject to sustainability due diligence requirements, after a report that recommends it should apply only to businesses with 5,000 employees or more and a turnover of €1.5 billion. The report, from the European Council, sets the scene for negotiations at the highest levels in Brussels that now seem poised to drastically reduce the scope of requirements in the Corporate Sustai…
On 23 June the EU Council adopted a significant simplification of two of its most ambitious standards on corporate sustainability: the Sustainability Reporting Directive (CSRD) and the Due Diligence Directive (CS3D). With this measure, it postpones its entry into force and significantly reduces burdens on small and medium-sized enterprises, and also indirectly for many self-employed companies operating as subcontractors to large corporations. “F…
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