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Relaxation of sustainability requirements for companies approved by the EU Parliament

by AI | 13.Nov 2025 | Europe in brief AI

The European Parliament has finally agreed to relax the sustainability requirements for companies, with the support of the far-right factions, after a compromise proposal was rejected during the previous plenary session. The centrist parties accuse the Christian Democrats (EPP) of having struck a deal with the far-right.

European Parliament in Brussels. Photo: ALEKS MITCHIK / AGERPRES PHOTO

During the plenary session at the end of October, the compromise from the EPP, the socialists, and the liberals was surprisingly rejected during a secret vote. A new vote was therefore necessary, with no agreement among the so-called pro-European parties. The EPP submitted a series of amendments, all of which were adopted.

Ultimately, 382 Members of Parliament voted for the final text, 249 against, and 13 abstained. The far-right groups Patriots for Europe and ESN and the ECR, which had voted against the compromise proposal in the previous vote, now voted in favor.

The duty of care law, a directive (CSDDD) from 2024, requires companies to monitor potential abuses in their supply chains more closely, such as forced labor or child labor. The parliament wants this law to apply only to companies with more than 5,000 employees and a net turnover of 1.5 billion euros. The directive (CSRD) that requires companies to report on the impact of their activities on climate and the environment is also sought to be relaxed by the parliament members. The scope would be limited to companies with an average of more than 1,750 employees and a net turnover of at least 450 million euros. The rejected compromise still included companies with at least 1,000 employees.

Additionally, the obligation for companies to submit climate transition plans, which was included in the compromise proposal, was not retained.

The Belgian Members of Parliament from Open VLD, CD&V, N-VA, and Vlaams Belang voted for the final text. Hilde Vautmans (Open VLD), one of the few Renew members who voted in favor, described it as a “much-needed relief for the burdens on our companies.”

The other parties voted against and condemned the cooperation of the EPP with the far-right. “The European Parliament is officially in the hands of the far-right,” reacted Yvan Verougstraete (Les Engagés). “The sanitary cordon is dead and buried, the Green Deal and the duty of care have been abandoned, murdered by a climate-skeptical, ultra-liberal, and conservative coalition.” His party made the switch from the EPP to Renew this legislature.