Headlines
EU proposes cutting back sustainability laws for companies
Published by Global Banking & Finance Review®
Posted on February 26, 2025
1 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 26, 2025
1 min readLast updated: January 25, 2026
The EU proposes reducing sustainability reporting requirements, affecting thousands of companies. Only those with over 1,000 employees will report impacts.
BRUSSELS (Reuters) - The European Commission on Wednesday proposed sweeping changes to EU green rules, scrapping sustainability reporting requirements for thousands of companies and delaying its due diligence policy by a year.
Under the proposals, only companies with over 1,000 employees would be obliged to report on their environmental and human rights impact.
The rules currently target firms with over 250 employees, and the commission said the change would exempt 40,000 companies - or 80% of all firms the policy was originally designed to apply to.
The proposals will need to be negotiated and approved by the European Parliament and EU member states.
(Reporting by Kate Abnett, editing by Bart Meijer)
The European Commission proposed to scrap sustainability reporting requirements for companies with fewer than 1,000 employees, significantly reducing the number of firms required to report.
The proposed changes would exempt approximately 40,000 companies, which is about 80% of all firms originally targeted by the sustainability reporting policy.
Currently, companies with over 250 employees are required to report on their environmental and human rights impact, but the new proposal raises this threshold to 1,000 employees.
The proposals will need to be negotiated and approved by both the European Parliament and EU member states before they can be enacted.
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