Expanded Exemptions: Proposed thresholds would exempt most companies from CSRD and CSDDD, raising eligibility to 3,000 employees and €450M revenue.
Looser Value Chain Reporting: Firms can comply without full supplier data if efforts to obtain it are documented.
Climate Plans Optional: Mandatory transition plans scrapped—firms only report if they have one.
The European Parliament’s lead negotiator on the Omnibus regulatory package, Jörgen Warborn of the European People’s Party (EPP), has released a proposal calling for significantly deeper cuts to the EU’s sustainability reporting obligations than those originally suggested by the European Commission.
The draft amendments—intended to form the Parliament’s negotiation stance—would drastically narrow the scope of both the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). Warborn’s version raises the threshold to 3,000 employees and €450 million in annual revenue, compared to the Commission’s proposal of 1,000 employees. This would remove the vast majority of companies from mandatory sustainability reporting.
“I’m entering this process with a clear ambition: to cut costs for businesses and go further than the Commission on simplification,” Warborn stated. “Less red tape and fewer burdens for businesses. That’s how we strengthen Europe’s economy.”
Additional proposals include major relaxations in supply chain reporting. Companies would be allowed to explain why data is unavailable rather than being penalized for gaps. For small businesses within a value chain, the draft specifies that large firms should not request information unless adverse impacts are likely, relying instead on what is “reasonably available.”
RELATED ARTICLE: EU Commission Publishes FAQ on Implementing New Corporate Sustainability Reporting Rules
The draft also eliminates the obligation for companies to develop climate transition plans, only requiring disclosure if such plans exist. It further prevents EU member states from enacting stricter due diligence rules, which had been permitted under the original language for addressing emerging risks.
These aggressive rollbacks are expected to complicate negotiations in Parliament, where positions already range from defending the original CSRD and CSDDD frameworks to advocating for their full repeal.
The final package will be shaped through trilogue negotiations among the Parliament, the Council, and the Commission later this year.
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