European Parliament proposes nearly 1000 amendments to sustainability reporting law

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

🗞️ Driving the news: The European Parliament is currently debating nearly 1,000 proposed amendments to the EU’s cornerstone sustainability legislation — the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D)
• These amendments reflect a sharp political divide, with proposals ranging from strengthening reporting obligations to fully repealing key elements of the European Green Deal
• The review process stems from the Commission’s Omnibus Simplification Package aimed at easing regulatory burdens on businesses

🔭 The context: The CSRD and CSDDD were adopted as part of the EU Green Deal to increase corporate accountability on climate and human rights impacts
• CSRD mandates ESG disclosures, while CSDDD adds legal liabilities for supply chain-related risks. • However, rising concerns over administrative costs, especially among SMEs, triggered a political backlash during the 2024 elections
• The Commission responded by proposing revisions, sparking a flood of amendments from Members of European Parliament (MEPs) across committees

🌍 Why it matters for the planet: These directives form the legal backbone of EU corporate sustainability accountability
• Weakening or repealing them could stall climate action, reduce supply chain transparency, and undermine global ESG standards
• Lowering thresholds for applicability or diluting enforcement would allow large emitters and value chain actors to operate with less oversight
• Conversely, upholding or tightening the rules could cement the EU’s role as a global leader in sustainable finance and corporate responsibility

⏭️ What's next: The Committee on Legal Affairs (JURI) will consolidate proposals into a final draft for a full Parliament vote later this year
• Parallel inputs from the ECON and ENVI committees highlight diverging priorities — some MEPs argue deregulation threatens long-term sustainability goals, while others call for a full repeal to reduce business burdens
• Intense negotiations between Parliament, the Commission, and Council are expected throughout summer, with final positions likely emerging by Q4 2025

💬 One quote: “To discard the bulk of corporate sustainability requirements at this time is short-sighted and reckless.” — MEPs of The Left, Amendment 2 (ENVI Committee)

📈 One stat: The proposed 1,000-employee reporting threshold is referenced over 350 times in the submitted amendments — a central issue in defining the scope of CSRD and CSDDD applicability

Click for more news covering the latest on ESG