The EU Parliament has voted to scale back corporate sustainability laws by raising the thresholds for company compliance and delaying reporting deadlines until 2028. The new rules mean the CSRD only affects very large companies, and even larger thresholds apply for the CSDDD. Requirements like mandatory Paris Agreement transition plans were dropped, and accountability shifted from the EU to national governments. Environmentalists criticized the move as weakening climate action, and experts noted it now covers far fewer businesses. The changes await ratification and may still be subject to modification after negotiations with member states.
