EU Legal Committee Moves to Limit Corporate Sustainability Rules

The European Parliament's legal committee has voted to further trim the EU's corporate sustainability law, responding to concerns from businesses about its impact on competitiveness. The corporate sustainability due diligence directive (CSDDD) will now affect only larger companies with over 5,000 employees and a turnover exceeding 1.5 billion euros.

Originally covering firms with at least 1,000 employees, the revised rules also scrap the requirement for companies to align their operations with climate change goals through 'transition plans'. 'Our vote today aims to simplify regulations and reduce costs,' said Jorgen Warborn, the lawmaker behind Monday's approved text.

The decision has sparked division, with EU countries and some international voices backing the changes, while investors and campaigners argue it weakens corporate accountability. Despite resistance, the committee has urged the European Parliament to commence negotiations on finalizing the rules, with deliberations set for next week.

(With inputs from agencies.)