EU – In mid-December 2025, the Legal Committee of the European Parliament and representatives of the member states agreed on an extensive reform of the EU regulations on sustainability reporting (CSRD) and the corporate obligation to due diligence. The aim of the compromise is to reduce the administrative effort and strengthen the competitiveness of European companies.
The deal brings significant relief to many medium-sized companies. However, the obligation to transparency and corporate responsibility still applies for the biggest players.
In future, the obligation to publish sustainability reports only applies to EU companies with over 1,000 employees and a turnover of more than 450 million Euros. The obligation to curb negative social and environmental impacts in the supplier chain will only come into force for very large companies with over 5,000 employees and a turnover of over 1.5 billion Euros. The same turnover thresholds for the business activities within the EU are to apply for non-European companies.
The compromise is subject to the final approval of the European Parliament and the European Council. The final decision is to be taken before the end of the year.
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