The European Parliament’s plenary session is shaking up corporate sustainability with proposed amendments aimed at heightening reporting and due diligence mandates for companies across the EU. The debate ignites reactions from environmental advocates, business groups, Member States, and civil society, each championing their vision of how far EU rules should go — especially regarding company size thresholds, climate responsibilities, and supply chain oversight.
These amendments were published on 17 October 2025 in a report on the proposal to amend key Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 concerning corporate sustainability reporting and due diligence requirements. The document originates from the European Parliament’s plenary and includes input from specialized committees such as AFET, EMPL, ENVI, and INTA.
This document is an amendment report proposing concrete changes to existing EU directives. It contains countless detailed policy proposals, numerical thresholds for company obligations, provisions on liability and climate transition plans, as well as mechanisms for harmonization versus national flexibility. The report is heavily political and shows a broad divergence in ambition and scope among political groups, from maximalist sustainability safeguards to deregulatory stances seeking higher thresholds and loosened obligations.
Policy directions tilt towards intensifying corporate accountability with broader scope, tighter supply chain due diligence, and binding climate action plans, though with considerable clashes over how far to extend EU oversight versus preserving national discretion and business ease. Some factions push for lowering company size thresholds to capture more enterprises, while others advocate higher cut-offs and exempt SMEs to reduce burdens.
environmental NGOs and consumer advocates may welcome stricter rules enhancing climate and social protections; large corporations could face increased reporting and compliance costs; SMEs might benefit from exemptions but are still uncertain about indirect impacts; and Member States will see their regulatory space contested between harmonization and flexibility. The trade-offs reflect competing priorities of EU integration, enhanced transparency, business competitiveness, and administrative feasibility.
This amendment marks a significant milestone in an ongoing process to reform corporate sustainability legislation. Next steps include further negotiation in the European Parliament and Council, with potential input from the European Commission, aiming to finalize the directive’s text in the coming months.
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