MEPs vote in favour of major rollback of corporate sustainability laws

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🗞️ Driving the news: The European Parliament’s legal affairs committee has voted to significantly weaken the EU’s flagship corporate sustainability and due diligence laws, supporting a set of amendments that raise thresholds for company compliance and reduce legal accountability
• The vote, held on 13 October, was led by centre-right MEP Jörgen Warborn, who framed the move as a necessary compromise after weeks of political wrangling

🔭 The context: The Corporate Sustainability Due Diligence Directive (CSDDD), passed in 2024, was designed to make large companies responsible for environmental and human rights abuses throughout their global supply chains
• The committee’s revised text now proposes to limit the directive’s scope to companies with over 5,000 employees and €1.5 billion turnover, a sharp rise from the original 1,000-employee and €450 million threshold
• Additionally, the requirement for companies to adopt climate transition plans and allow for civil liability under EU law has been substantially diluted

🌍 Why it matters for the planet: The CSDDD was a cornerstone of the EU Green Deal’s ambition to align corporate practices with sustainability goals
• This rollback undermines efforts to improve supply chain transparency and corporate accountability for environmental harm, particularly in sectors like mining, agriculture, and textiles
• It also risks signaling a retreat from the EU’s leadership role in global sustainable governance and weakens safeguards for communities impacted by European business operations abroad

⏭️ What's next: The full European Parliament will vote on the amended text in the coming weeks
• If approved, trilogue negotiations with the European Council and Commission will follow
• Civil society organisations and progressive lawmakers are mobilising to restore key provisions before final adoption
• With European elections looming in 2026, the outcome may shape the EU’s credibility on climate, human rights, and responsible business

💬 One quote: “If such changes are ultimately adopted, this law will be stripped of its very purpose for short-term political convenience.” – Amandine Van den Berghe, senior lawyer at ClientEarth

📈 One stat: The revised law would apply to fewer than 1% of EU companies, down from an estimated 13,000 firms under the original CSDDD threshold

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