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| The EU has agreed to simplify sustainability reporting |
| Brusel, 09.12.2025 |
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| Negotiators of the Council of the EU and the European Parliament (EP) reached a provisional agreement on Tuesday night on simplifying sustainability reporting and due diligence requirements to strengthen the EU's competitiveness. TASR's correspondent reports.
The agreement simplifies the Corporate Sustainability Reporting Directives (CSRD) and Corporate Sustainability Due Diligence (CS3D) by reducing the reporting burden and limiting the spillover effect of these obligations on smaller companies.
Danish Minister of Industry, Trade and Finance Morten Bodskov, on behalf of the country holding the EU Council presidency, said that European businesses have long faced red tape, which is slowing down green investments and weakening their competitiveness.
“We are taking an important step in the right direction. With clear and simple rules, companies can focus on achieving better value for money in the green transition, creating European jobs and strengthening their capacity to grow and invest,” explained Bodskov.
In the context of the CSRD, the European Commission (EC) proposed to raise the threshold for the number of employees to 1000 and to exclude listed SMEs from the scope of the directive. Negotiators added a threshold of net turnover of more than €450 million to ease the reporting burden on companies.
The EU institutions also agreed to exempt financial holding companies from the scope of the CSRD and to grant a transitional exemption for companies that started reporting from the financial year 2024 and that do not fall within the scope for the years 2025 and 2026.
The provisional agreement raises the thresholds to 5,000 employees and €1.5 billion in net turnover. According to the negotiators, such large companies have the greatest impact on their value chain.
The European Commission proposal limits the further assessment of the identification phase to the company's own activities, the activities of its subsidiaries and the activities of its direct business partners. The agreement between the EU institutions removes this limitation. In addition, companies should no longer be required to carry out comprehensive mapping, but should base their efforts on reasonably available information, which will reduce the spillover effect of information requests on smaller business partners.
In order to ensure a significant reduction in administrative burden, the obligation for companies to adopt a climate change mitigation transition plan has been abolished.
The provisional agreement removes the harmonised EU liability regime and the requirement for Member States to ensure that liability rules take precedence over application in cases where the applicable law is not the national law of a Member State. A clause to review the need for a harmonised EU liability regime has been inserted.
As regards sanctions, negotiators agreed on a maximum cap of 3% of a company's net worldwide turnover.
Finally, the provisional agreement postpones the transposition deadline of the CS3D Directive by another year, to 26 July 2028. Companies will have to comply with the new measures by July 2029.
The provisional agreement still needs to be approved by the EU Council and the European Parliament.odkaz na stránku |
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