Brussels plans sweeping cuts to EU’s green rules, leaked bill reveals

illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: A leaked draft of the EU’s upcoming omnibus legislation reveals plans to significantly weaken corporate sustainability rules, exempting many businesses from reporting requirements
• The proposed changes would limit the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) to only the largest companies, delaying implementation and reducing due diligence obligations
• The bill, expected on February 26, aims to cut regulatory burdens on businesses but has sparked backlash from environmental groups

🔭 The context: The CSRD and CSDDD were introduced to ensure corporate accountability on climate and human rights issues, but businesses and some EU member states have lobbied for relaxed rules
• The new proposal would increase the employee and revenue thresholds for mandatory reporting, exclude indirect suppliers from due diligence, and remove EU-wide corporate liability, leaving enforcement to national laws
• Critics argue that this is a major deregulation effort disguised as simplification

🌍 Why it matters for the planet: Weakening these regulations could reduce corporate transparency on environmental and social impacts, slowing progress on climate action and human rights protections
• Limiting supply chain oversight increases the risk of environmental harm and labor abuses going unchecked
• If passed, this rollback could set a precedent for watering down sustainability regulations globally

⏭️ What's next: The European Parliament and member states must approve the proposed changes, setting up a political battle between pro-business and pro-environment groups
• Green and center-left lawmakers are expected to oppose the bill, while industry groups and some governments support the deregulation push
• The final decision will determine whether the EU maintains its leadership in corporate sustainability or scales back its commitments

💬 One quote: “Sustainability laws designed to tackle the most pressing crises—climate breakdown, human rights abuses, corporate exploitation—are being crossed out behind closed doors and at record speed.” – Maria van der Heide, ShareAction

📈 One stat: Companies affected by CSRD would shrink dramatically, from those with 50 employees and €8M turnover to only those with 1,000 employees and €450M turnover

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