EU parliament shifts corporate rulebook in favour of business interests

Mace | 14th November 2025 | International, Uncategorised
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The European Parliament on 13 November 2025 approved amendments that sharply reduce the scope of the Corporate Sustainability Due Diligence Directive and the associated reporting regime

The European Parliament backed a position that sets compliance only for companies with at least 5 000 employees and annual turnover above €1.5 billion, reversing earlier thresholds of 1 000 employees and €450 million turnover. The requirement for firms to prepare climate transition plans was removed altogether. Lawmakers approved the package in a vote with 382 in favour and 249 opposed. Ahead of the vote an alliance of centre-right and far-right groups co-operated to secure changes, thereby deviating from the traditional bloc alignments in the Parliament. This move came after firms and governments, including the United States and Qatar, warned that the original directive would impede investment and supply-chain operations in the bloc. Critics warn the amendments may undermine corporate accountability for human-rights and environmental risks across supply chains. Some civil-society organisations argue that by narrowing the number of covered firms and removing key obligations the legisla...

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