European Parliament Reduces Scope of Corporate Sustainability Reporting and Due Diligence Requirements
- uIMPACT
- Nov 18, 2025
- 2 min read
Updated: Dec 3, 2025
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.
The new rules narrow the scope of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) by raising the thresholds for the number of employees and revenue. As a result, the number of companies falling under the EU’s sustainability reporting requirements is significantly reduced. According to experts for CSRD reporting, the number of obligated companies has decreased by 95%. The changes also remove the requirement for companies 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 will aim to finalize the legislation by the end of 2025.
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