Council approves simplification of EU sustainability reporting and due diligence rules

Council approves simplification of EU sustainability reporting and due diligence rules

The Council of the European Union has approved new measures to simplify corporate sustainability reporting and due diligence requirements, as part of efforts to reduce administrative burdens on companies and strengthen the EU’s economic competitiveness. The reform adjusts key elements of the EU framework governing sustainability reporting and corporate due diligence obligations.

The changes affect existing legislation on corporate sustainability reporting and due diligence in supply chains, including the Corporate Sustainability Reporting Directive (CSRD). The revised rules aim to streamline reporting requirements, narrow the scope of companies subject to certain obligations, and simplify compliance procedures, particularly for smaller firms.

The initiative forms part of a broader EU effort to simplify regulatory frameworks while maintaining transparency and accountability standards related to environmental, social and governance (ESG) practices. The reform seeks to balance sustainability objectives with the need to ensure that EU companies remain competitive and able to operate efficiently within the single market.

Source: Council of the European Union