Overview
- Parliament negotiators and the Council agreed to narrow the CSRD and CSDDD, setting reporting at companies with over 1,000 employees and €450 million turnover, and due diligence at over 5,000 employees and €1.5 billion turnover.
- The CSDDD timetable slips by a year, with national transposition due by July 26, 2028 and company compliance starting in July 2029.
- Companies in scope will no longer be required to adopt climate transition plans, sector‑specific reporting under CSRD becomes voluntary, and smaller firms are shielded from being forced to provide extra data.
- Liability and enforcement shift to member states rather than the EU level, with potential fines up to 3% of a company’s net worldwide turnover.
- Investors warn the cuts will reduce comparable data, while U.S. critics object to the rules’ extraterritorial reach; the Legal Affairs Committee votes Dec. 11 ahead of a plenary decision on Dec. 15–16.