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The EU Parliament’s Committee on Legal Affairs voted on Monday to move ahead with major cuts to a set of sustainability directives. Lawmakers opted to have the Corporate Sustainability Reporting Directive (CSRD) apply only to companies with at least 1,000 employees, while for the Corporate Sustainability Due Diligence Directive (CSDDD), the threshold will be 5,000. Both were originally intended to cover companies with at least 250 employees. Business groups had argued that the directives would hurt European competitiveness. CSDDD, designed to ensure companies are held accountable for human rights and environmental violations in their value chains, had emerged as a particularly contentious framework. The U.S. Chamber of Commerce had warned that the directives represent an "unprecedented regulatory overreach." Lawmakers will begin negotiations with the EU’s 27 member states on a final agreement next week, with the target of striking a deal by the end of the year.
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