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Adopted text

Certain corporate sustainability reporting and due diligence requirements

TA-10-2025-0264 · P10_TA(2025)0264 · PE774.282

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Parliament's amended version of the proposal amending EU rules on corporate sustainability reporting and due diligence. It raises employee and turnover thresholds for reporting obligations, removes certain requirements, and adjusts due diligence rules. The text also sets new rules on assurance standards, voluntary reporting standards, and penalties, and requires the Commission to create a digital reporting portal.

Key points

  1. Sustainability reporting obligations apply to undertakings with more than 1,750 employees and a net turnover over EUR 450,000,000, replacing the previous 1,000-employee threshold.
  2. Parent undertakings that are financial holding undertakings are exempt from sustainability reporting obligations; recent acquisitions get a 24-month transition period.
  3. Reporting undertakings must not seek value-chain information beyond voluntary standards from smaller partners, but may collect commonly shared sector information.
  4. The Commission must adopt limited assurance standards by 1 October 2026, after obtaining an opinion from EFRAG.
  5. The Commission must adopt voluntary sector-specific guidelines and revise the first set of European Sustainability Reporting Standards within six months of entry into force.
  6. Due diligence obligations apply to companies with over 5,000 employees and net worldwide turnover over EUR 1.5 billion; ultimate parent companies that are holding companies may be exempt if a subsidiary fulfils obligations.
  7. Companies must use a risk-based approach for due diligence, relying on reasonably available information, and may prioritise the most severe and likely adverse impacts.
  8. Suspension of business relationships is a last resort, with conditions for not suspending, including reporting to supervisory authorities.
  9. Member States may set maximum pecuniary penalties at 5% of net worldwide turnover, and the Commission will issue guidance on penalty levels.
  10. The Commission must establish a digital reporting portal as a one-stop-shop for companies, with free access to templates and guidelines.

Who is affected

  • Large undertakings and parent groups with over 1,750 employees and EUR 450 million turnover are subject to sustainability reporting.
  • Smaller value-chain undertakings are protected from excessive information requests.
  • Financial holding undertakings are exempt from reporting obligations.
  • Companies with over 5,000 employees and EUR 1.5 billion turnover are subject to due diligence rules.
  • Third-country subsidiaries and branches must report if they meet new turnover thresholds.

Figures and deadlines

  • 1,750 employees and EUR 450,000,000 net turnover thresholds for reporting obligations.
  • 5,000 employees and EUR 1.5 billion net worldwide turnover for due diligence scope.
  • 1 October 2026 deadline for adopting limited assurance standards.
  • 24 months transition period for recent acquisitions.
  • 5% of net worldwide turnover as maximum pecuniary penalty.
  • EUR 450,000,000 net turnover threshold for third-country subsidiaries and branches.