In a vote on October 22, the European Parliament rejected the Legal Affairs Committee’s October 13 mandate on simplified rules for sustainability reporting and due diligence obligations. For more information, click here.
After months of negotiations, EU lawmakers agreed to a “compromise” package proposed last week on the negotiating position for the Commission’s Omnibus I “simplification” package.
Summary of most significant changes vs. the Commission’s initial proposal
Following the new deal, CSRD would cover only companies with more than 1,000 employees and at least €450 million in net turnover. In comparison, the Commission initially proposed the >1,000-employee threshold to be paired with either €50 million in net turnover or €25 million in balance-sheet total.
For CSDDD, the threshold would rise to ≥5,000 employees and €1.5 billion in turnover, with a shift to a fully risk-based due-diligence model with a value-chain cap of 5,000 employees. The Commission’s original draft had retained the 1,000-employee threshold.
Next steps & timing
The Legal Affairs Committee (JURI) is scheduled to vote on October 13, 2025, with a plenary vote expected the following week to formalize Parliament’s mandate. Trilogues between Parliament and Council are planned for November–December 2025 to negotiate the final legal text.
Trilogue may still adjust the position and the outcome will only take legal effect after formal adoption of the text.
