Green groups decry EU betrayal' after vote to reduce oversight of firms

"The gutting of the EU's sustainability reporting and due diligence rules, which was greenlit by MEPs on Tuesday, slashes the number of companies covered by laws to protect human and ecological rights, and removes provisions to harmonise access to justice across member states. Social and environmental reporting will only be required of companies with more than 1,000 employees and a net annual turnover of at least 450m, while due diligence will only have to be carried out by companies with more than 5,000 employees and a net annual turnover of at least 1.5bn. The latter requirement has been delayed until 2029."

"The vote, which rubber-stamps changes negotiated by lawmakers and member states over the past few weeks, also removes transition plans from due diligence rules that would make companies show how their business model is compatible with the shift to a sustainable economy. Jorgen Warborn, a Swedish MEP from the centre-right European People's party (EPP), said it was an important first step in the EU's efforts to simplify rules across the continent. Parliament has listened to the concerns expressed by job creators across Europe, he said. Backed by a broad majority, today's vote delivers historic cost reductions while keeping Europe's sustainability goals on track. The text passed with 428 votes in favour and 218 against."

"Green groups and rights campaigners criticised the EPP's alliance with the far right to water down the file, as well as pressure from the US and Qatar, who opposed the rules. Today's vote is a betrayal of people and communities suffering from corporate abuse around the world, said Nele Meyer, director of the European Coalition for Corporate Justice."

European lawmakers approved a substantially weakened package of sustainability reporting and corporate due diligence rules that narrows the number of firms covered and removes harmonised access to justice provisions. Social and environmental reporting now applies only to companies with more than 1,000 employees and at least €450m turnover, while mandatory due diligence is limited to firms with over 5,000 employees and €1.5bn turnover, with that requirement delayed until 2029. Transition plans were removed from due diligence obligations. The measure passed 428–218. Critics said alliances with the far right and foreign pressure from the US and Qatar watered down protections for affected communities.

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