European Parliament Pushes for Broad, Harmonised Corporate Sustainability and Due Diligence Reporting in Latest Amendments

The European Parliament intends to tighten corporate sustainability reporting and due diligence obligations, stirring robust reactions among businesses, national authorities, civil society groups, and EU regulatory bodies. This lively document promises to reshape accountability measures for companies operating within the EU, especially impacting large corporations and their supply chains.

This outline derives from the amendment report published on October 17, 2025, by the European Parliament's Plenary session. The text assesses proposals that modify four key directives governing corporate transparency and sustainability-related obligations.

Classified as a legislative amendment, the document integrates over 2,000 parliamentary amendments from diverse political groups, indicating concrete proposals with targets on company size thresholds, the scope of due diligence, climate transition plans, civil liability frameworks, and harmonisation versus national flexibility in enforcement. These range from broad obligations for all sizable companies to calls for narrower scopes and relaxed SME requirements.

The European Parliament's policy orientation reveals deep cleavages: progressive groups like the Greens/EFA and S&D advocate expanded due diligence duties, strict climate alignment, and harmonised EU-wide rules. In contrast, centre-right and right-wing factions (EPP, ECR, PFE, ESN) seek higher thresholds to limit obligations, argue for substantial national discretion, and promote deregulatory stances. The Renew group straddles an intermediate position, balancing ambition and pragmatism. Notably, liability and climate transition planning pose particular flashpoints.

Stakeholder impacts reflect these trade-offs. Businesses, especially large corporations in sectors with extended supply chains, face increased compliance costs and operational complexities but clearer legal certainty and integration into EU sustainability goals. National authorities might bear a heavier monitoring and enforcement burden but gain more uniform frameworks. Consumers and civil society could benefit from increased transparency and accountability but might face delays in effective policy due to the political divisions.

This amendment marks a continuation of the ongoing process toward harmonised corporate sustainability regulation in the EU. The Council of the EU and the European Commission are expected to respond with their positions, opening the next phases of negotiations and legislative finalisation.