European Parliament Reduces Scope of Corporate Sustainability Reporting and Due Diligence Requirements
- uIMPACT
- 6 hours ago
- 1 min read
On November 13, the European Parliament approved changes to the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).
The vote passed with 382 MEPs in favor and 249 opposed.
Under the new rules, companies are no longer required to prepare climate transition plans aligned with the Paris Agreement.
The table below summarizes the original reporting requirements versus the revised
thresholds approved on 13 November 2025:
Directive | Original Scope | Revised Scope (Nov 13, 2025) |
CSRD | Companies with >250 employees or >€50M turnover | Companies with >1,750 employees and >€450M turnover |
CSDDD | Companies with >500 employees or >€150M turnover | Companies with >5,000 employees and >€1.5B turnover |
Climate Transition Plans | Required | No longer required |
Due Diligence / Liability | EU-level enforcement, information requests from value chain as needed | National-level enforcement, use existing information first, additional requests only as last resort |
For companies below the thresholds, obligations are limited to voluntary sustainability reporting standards. Due diligence requirements for covered companies rely primarily on information already available, with additional requests from smaller business partners allowed only when necessary.
The European Parliament’s position differs from the EU Council’s previous stance, and negotiations between Parliament and Council are scheduled to begin next week to finalize the legislation by the end of 2025.
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