EU parliament committee proposes much deeper cuts than Omnibus to sustainability peporting laws

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🗞️ Driving the news: The European Parliament’s ECON Committee is considering amendments to the EU Commission’s Omnibus I package that would dramatically scale back sustainability reporting obligations under key EU regulations
• The draft proposes raising the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) thresholds to 3,000 employees and €450 million in revenue — further limiting the number of affected companies beyond the Commission’s initial proposal

🔭 The context: The Omnibus I package, introduced in February 2025, aims to ease regulatory pressure on companies by streamlining the EU’s sustainability framework, including the CSRD, CSDDD, the EU Taxonomy, and CBAM
• The Commission had already proposed limiting the CSRD to firms with over 1,000 employees and €50 million turnover, removing up to 80% of currently covered companies
• The ECON Committee's proposals go further, signaling a deepening divide in Parliament over how to balance regulatory efficiency with climate accountability

🌍 Why it matters for the planet: If enacted, these changes would significantly reduce corporate climate disclosure across the EU, limiting transparency and weakening a key pillar of the bloc’s Green Deal architecture
• Narrowing the CSRD and CSDDD’s scope could undermine efforts to integrate environmental and human rights due diligence into business practices, and stall momentum on sustainable finance initiatives reliant on consistent, comparable data

⏭️ What's next: Parliamentary debate on the Omnibus package is expected to intensify in the coming weeks, with member states and political factions sharply divided
• Final amendments and potential compromises will shape how widely the CSRD and CSDDD apply — decisions likely to impact investor expectations, corporate accountability, and EU climate credibility ahead of the 2025 UN Climate Conference (COP30) in Brazil

💬 One quote: “The declared objective is simplification — but such drastic cuts risk dismantling years of progress on corporate sustainability,” — an unnamed EU policy analyst familiar with the draft

📈 One stat: Under the ECON Committee’s proposal, companies subject to the CSRD would be reduced even further than the Commission’s plan, which already proposed removing 80% of firms from reporting obligations

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