On the proposal for a directive of the European Parliament and of the Council amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting and due diligence requirements
EMPL-PA-773274
Committee on Employment and Social Affairs · Rapporteur: Li Andersson
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The draft opinion opposes the Commission's proposal to amend corporate sustainability reporting and due diligence directives, arguing it would weaken protections. It proposes amendments to maintain the scope and requirements of the existing framework.¶¶ The amendments delete many proposed changes, including raising employee thresholds, limiting value chain information requests, and removing liability and harmonisation provisions. They also add requirements for transition plans and stakeholder engagement.¶¶¶
Committee position. The Committee on Employment and Social Affairs proposes amendments to reject the Commission's proposed deregulation, maintaining the scope and strength of the sustainability reporting and due diligence framework.¶¶
Key points
- Opposes the Commission's simplification agenda, stating it leads to legal uncertainty and rolls back recently adopted obligations.¶
- Deletes the proposal to limit sustainability reporting to undertakings with over 1000 employees, keeping the current scope.¶¶¶
- Deletes the removal of sector-specific reporting standards and the voluntary reporting standard for SMEs, arguing they are useful.¶¶¶
- Deletes the restriction on requesting value chain information beyond the voluntary SME standard, as it would hinder risk assessment.¶¶¶
- Deletes the raising of thresholds for third-country undertakings' reporting obligations.¶¶¶
- Deletes the expansion of full harmonisation in due diligence, preserving member states' ability to adopt stricter rules.¶¶¶
- Deletes the limitation of due diligence to direct business partners, requiring comprehensive risk-based due diligence along supply chains.¶¶¶
- Requires companies to adopt and, through best efforts, put into effect climate transition plans.¶¶¶
- Deletes the removal of the Union-wide civil liability regime and the requirement for penalties based on turnover, ensuring access to justice.¶¶¶
- Retains the Commission's reporting obligation on financial undertakings' due diligence, with a report due by 26 July 2026.¶¶¶
Who is affected
- Large companies and parent groups subject to sustainability reporting and due diligence obligations.¶¶¶
- Small and medium-sized enterprises in value chains, which would receive support rather than information requests.¶
- Victims of corporate harm, who retain access to justice and full compensation.¶¶¶
- Financial undertakings, which remain subject to a review of due diligence requirements.¶¶