Reaching a settlement agreement that reduces sustainability and corporate disclosure requirements for European companies
Brussels, 9 December / WAM / Today, Tuesday, the European Parliament and the European Council reached a settlement agreement that reduces the requirements for sustainability and corporate disclosure for European companies, compared to what was imposed by European legislation adopted last year, without achieving the comprehensive rollback that the European Parliament sought recently.
Jürgen Warburn, chief negotiator for the European People’s Party, praised the agreement, considering it a victory for competitiveness and a win for Europe.
This development represents a drop in the mandatory climate transformation plans for companies.
The agreement comes after the European Commission proposed partial relief under pressure from business groups.
The move reduces the scope of European companies’ commitments to green transition rules.
Under the temporary formula, sustainability reporting requirements (CSRD) will be limited to companies with more than 1,000 employees and annual sales of more than €450 million, which the Danish Presidency of the EU Council believes will exempt more than 85% of companies that would have been subject to the previously proposed rules.
The due diligence threshold (CSDDD) has been raised to include only companies with more than 5,000 employees and revenues exceeding 1.5 billion euros, in addition to eliminating the mandatory climate transition plans completely.
The European Parliament is scheduled to vote on the agreement next Tuesday, while ambassadors from European Union countries review the file in preparation for a final decision later this week.
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