EU Parliament votes for major simplification of sustainability reporting and due diligence laws
EU Parliament votes for major simplification of sustainability reporting and due diligence laws
On 13 November 2025, the European Parliament voted on its negotiating position for the EU Commission’s Omnibus I initiative for substantial reductions to sustainability reporting and due diligence regulations.
Key changes endorsed
Simplified sustainability reporting and reduction in scope
- Only large undertakings, i.e. those with more than 1,750 employees and annual net turnover exceeding €450 million, would be required to report on social and environmental issues, as well as under EU taxonomy rules.
- Fewer qualitative disclosures would be required and sector-specific reporting would become voluntary.
- Smaller companies would be shielded from additional data requests by larger partners.
Corporate due diligence
- Obligations would apply only to large companies with over 5,000 employees and annual net turnover above €1.5 billion.
- These companies would adopt a risk-based approach to monitor and identify their negative impacts on people and the environment.
- The companies would use existing information and only request extra details from smaller partners as a last resort.
- Transition plans aligned with the Paris Agreement would no longer be mandatory.
- Non-compliance with due diligence requirements would result in national-level penalties, with affected victims entitled to full compensation.
- A new EU digital portal would provide free access to templates, guidance, and information on all reporting obligations, supporting the European Single Access Point.
Negotiations with the European Council are expected to begin on 18 November 2025, with the goal of finalising legislation by the end of 2025.
For further information, please refer to the press release from the European Parliament.