Easing EU Sustainability Rules

European Parliament negotiators and member states have reached a provisional agreement to simplify sustainability reporting and due diligence requirements for large companies within the EU. The deal, part of the Omnibus I legislative package, aims to reduce administrative burdens while maintaining commitment to sustainable practices.

Under the new rules, only EU companies with over 1,000 employees and an annual turnover exceeding €450 million will be required to report on their social and environmental impact. This threshold aligns with the increased requirements for non-EU companies generating the same amount in Europe. The agreement also introduces more quantitative measures and makes sector-specific reporting voluntary, easing the process for businesses.

Furthermore, stringent due diligence obligations will now only apply to major corporations with more than 5,000 employees and a turnover of over €1.5 billion. These companies must minimize their negative impacts on society and the environment, focusing on a risk-based approach within their activities. Notably, smaller companies are exempt from preparing transition plans aligned with the Paris Agreement, though they remain liable at a national level for non-compliance, with possible fines up to 3% of the net worldwide turnover.

The Legal Affairs Committee is set to vote on this provisional agreement on December 11, 2025, followed by a full Parliament vote in the upcoming plenary session in Strasbourg. A press conference detailing the agreement will be held on December 9, which can be accessed online for further insights.