MEPs endorse rollback of corporate sustainability rules on EPP terms

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🗞️ Driving the news: Members of the European Parliament have endorsed a proposal to significantly weaken corporate sustainability rules, marking a key political victory for the centre-right European People’s Party (EPP)
• The revised agreement reduces obligations for companies to assess and address environmental and human rights risks in their global supply chains
• The measure passed a committee vote by 17 to 6, with two abstentions, and now moves to a final vote in plenary

🔭 The context: The original Corporate Sustainability Due Diligence Directive (CSDDD) was a flagship component of the EU Green Deal, aiming to make companies legally accountable for abuses and environmental harm linked to their operations worldwide
• However, under pressure from business groups and EPP lawmakers, key provisions were scaled back
• The changes were agreed in negotiations with centre-left and liberal groups, reflecting political fragmentation ahead of the 2024 EU elections and a growing backlash against regulatory burdens

🌍 Why it matters for the planet: The rollback weakens a major tool intended to align EU business practices with climate and human rights commitments
• Critics argue the revised text dilutes corporate responsibility and undermines efforts to embed sustainability into global trade
• Without strong due diligence requirements, risks increase that European firms will continue sourcing from deforestation-linked, high-emission, or exploitative supply chains — with limited legal or financial consequence

⏭️ What's next: The full European Parliament will vote on the revised text in Strasbourg in the coming weeks
• If approved, the directive will proceed to negotiations with EU member states, where further amendments are possible
• Green and civil society groups have pledged to intensify opposition, warning that the weakening of due diligence rules could erode public trust in the EU’s climate and human rights agenda
• The outcome may also shape global expectations for corporate accountability legislation

💬 One quote: “Today’s vote confirms our support for simplification,” said Jörgen Warborn (EPP), the lead negotiator, framing the rollback as a regulatory streamlining effort.

📈 One stat: The revised proposal passed the Parliament’s committee by 17 votes to 6, signaling substantial political momentum despite widespread criticism.

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