EU eases rules on sustainability reporting

On 13 November 2025, the European Parliament adopted a package that significantly reduces the reporting burden for a large part of European industry. Only the largest companies will remain subject to the strictest sustainability and due-diligence rules, meaning many businesses, including those in the food sector, will face fewer administrative requirements.

Reporting limited to large enterprises

The proposed changes mean that sustainability reporting will remain mandatory only for companies with more than 1,750 employees and an annual turnover above 450 million euros. The taxonomy rules will also apply solely to this group. Reporting standards will become simpler, with fewer qualitative details. Sector-specific reporting becomes voluntary. Smaller companies are protected, as large business partners may not request additional information beyond what is included in the voluntary standards.

Due diligence restricted to the largest companies

The due-diligence obligations under the CSDDD would apply only to companies with more than 5,000 employees and turnover above 1.5 billion euros. These companies must use a risk-based approach to monitor and identify negative impacts on people and the environment. Smaller partners no longer need to provide extensive information unless existing data is genuinely insufficient. The mandatory transition plan linked to the Paris Agreement will be dropped. Fines remain possible in cases of non-compliance. Liability rests at the national level, and victims must be fully compensated.

Digital portal to improve clarity

The Parliament wants the Commission to develop a digital portal offering free templates, guidance and information on all EU reporting requirements. This portal will supplement the European Single Access Point and should give companies clearer support.

Rapporteur Jörgen Warborn stated: “Today’s vote shows that Europe can be both sustainable and competitive. We are simplifying the rules, reducing costs and giving companies the clarity they need to grow, invest and create well-paid jobs.”

Negotiations with EU governments will begin on 18 November. The aim is to finalize the legislation by the end of 2025.

Europarl.europa.eu