EU Parliament reaches agreement on the sustainability Omnibus
EU Parliament reaches agreement on the sustainability Omnibus
Following intense negotiations, lawmakers in the European Parliament have reached an agreement on a negotiating position for the EU Commission’s Omnibus I initiative, which proposes substantial reductions to sustainability reporting and due diligence regulations.
The compromise, backed by left and centre parties and proposed by the centre-right European People’s Party (EPP), would set the Corporate Sustainability Reporting Directive (CSRD) threshold at 1,000 employees but adds a €450 million revenue criterion. It also significantly raises the Corporate Sustainability Due Diligence Directive (CSDDD) threshold to companies with 5,000 employees and over €1.5 billion in revenue, while shifting to a ‘risk-based approach’ to due diligence.
Under the CSDDD, companies would still be required to adopt transition plans, however, the obligation to implement those plans has been removed.
The Greens, however, reject the deal as a true compromise.
However, this position is not yet final as it will be presented for a vote in the Parliaments’ Legal Affairs committee early next week, followed by a full vote in Parliament later this month, and then if the vote passes, negotiations will begin with the EU Council.
The compromise, backed by left and centre parties and proposed by the centre-right European People’s Party (EPP), would set the Corporate Sustainability Reporting Directive (CSRD) threshold at 1,000 employees but adds a €450 million revenue criterion. It also significantly raises the Corporate Sustainability Due Diligence Directive (CSDDD) threshold to companies with 5,000 employees and over €1.5 billion in revenue, while shifting to a ‘risk-based approach’ to due diligence.
Under the CSDDD, companies would still be required to adopt transition plans, however, the obligation to implement those plans has been removed.
The Greens, however, reject the deal as a true compromise.
However, this position is not yet final as it will be presented for a vote in the Parliaments’ Legal Affairs committee early next week, followed by a full vote in Parliament later this month, and then if the vote passes, negotiations will begin with the EU Council.