The European Parliament has approved a proposal to delay new corporate reporting requirements by up to two years. This decision affects large companies, small and medium-sized enterprises (SMEs), and those under the Corporate Sustainability Due Diligence Directive. The agreement was reached after negotiations between the center-right EPP, center-left S&D, liberal Renew, and Green parties. This marks a significant cooperation among these pro-European groups, which have been divided on various issues since the new Parliament took office.
The decision has sparked criticism, particularly from progressive parties and environmental advocates. They argue that this delay is a setback for European climate policy. The changes are seen as a response to pressure from businesses seeking a reduction in bureaucratic demands. Critics argue that such deregulation could weaken the EU's commitment to sustainability and human rights standards.
The legislation, particularly the EU's supply chain law, aims to hold companies accountable for human rights and environmental violations within their supply chains. However, the proposed delay and subsequent simplifications have raised concerns about the effectiveness of these measures. The changes include easing reporting obligations and reducing civil liability for violations.
Despite these controversies, the proposal is expected to pass with minimal opposition at the state level, as member states' approval is anticipated to be a formality. The decision reflects ongoing tensions between economic priorities and environmental commitments within the EU, as lawmakers continue to navigate complex legislative landscapes.
