The European Parliament voted on Thursday to scale back the European Union’s landmark Corporate Sustainability Due Diligence Directive (CSDDD), a law designed to hold major companies accountable for human rights abuses and environmental harm in their global supply chains.
Why It Matters:
The move marks a major retreat from one of the EU’s most ambitious corporate accountability frameworks. Critics say it undermines Europe’s climate leadership, while supporters argue that overly strict rules could have hurt business competitiveness and strained energy ties with non-EU suppliers.
EU lawmakers seeking to balance sustainability goals with business concerns.
Corporations and industry groups that lobbied for looser standards, warning of compliance burdens.
Countries such as the U.S. and Qatar, which opposed the law, citing potential risks to gas exports.
Environmental and human rights advocates, who condemned the vote as a setback for ethical trade.
What’s Next:
The European Parliament will now enter negotiations with EU member states to finalize the directive’s wording. The reduced scope means only companies with over 5,000 employees and €1.5 billion in annual turnover will be covered, and firms will no longer be required to publish climate transition plans.
With information from Reuters.
