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DRAFT REPORT (COM(2025)0081 – C100037/2025 – 2025/0045(COD))

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

JURI-PR-774282

Committee on Legal Affairs · Rapporteur: Jörgen Warborn

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

The draft report proposes amendments to a Commission directive on corporate sustainability reporting and due diligence, raising employee thresholds and adding turnover criteria. It narrows the scope of reporting obligations, adjusts due diligence rules, and deletes requirements for climate transition plans. It also introduces a digital reporting portal and clarifies liability and supervisory provisions.

Committee position. The rapporteur proposes amendments to raise thresholds, reduce reporting burdens, and align due diligence rules, while deleting climate transition plan obligations.

Key points

  1. Raises the employee threshold for sustainability reporting from 1000 to 3000 and adds a net turnover requirement of EUR 450 000 000.
  2. Replaces 'value chain' with 'chain of activities' and limits information requests from smaller entities in the chain.
  3. Requires reporting on transition plans only if they exist, and deletes the obligation to adopt climate transition plans.
  4. Allows financial holding undertakings to be exempt if a subsidiary complies on their behalf.
  5. Limits collective responsibility for digital reporting to publication in the single electronic format.
  6. Aligns thresholds for third-country subsidiaries and branches with the new EUR 450 000 000 turnover.
  7. Expands full harmonisation to more due diligence provisions and deletes the option for stricter national rules.
  8. Restricts due diligence assessments to direct business partners, with further assessments only where risks are most likely and severe.
  9. Allows suspension of business relationships to be avoided if it would cause substantial prejudice, with reporting to supervisory authorities.
  10. Advances the Commission's deadline for due diligence guidelines to 26 July 2026 and defers application to 26 July 2028.
  11. Establishes a digital reporting portal as a one-stop shop for companies, with free access to templates and information.
  12. Protects trade secrets by stating that reporting obligations do not require disclosure of such information.

Who is affected

  • Large undertakings and groups with over 3000 employees and EUR 450 million turnover are subject to reporting.
  • Smaller companies in chains of activities face reduced information requests from reporting undertakings.
  • Financial holding undertakings can be exempt if a subsidiary complies on their behalf.
  • Third-country subsidiaries and branches face adjusted turnover thresholds for reporting.
  • Companies subject to due diligence get more flexibility in prioritising risks and avoiding suspension.

Figures and deadlines

  • 3000 employees and EUR 450 000 000 net turnover thresholds for reporting scope.
  • 1 October 2026 deadline for adopting limited assurance standards.
  • 26 July 2026 for guidelines and 26 July 2028 for application.
  • EUR 450 000 000 net turnover for third-country subsidiaries and branches.
  • 24 months after entry into force for the Commission's report on technological solutions.

Legal basis: Article 294(2) and Articles 50 and 114 of the Treaty on the Functioning of the European Union