The EU Is Expected to Loosen Regulations on Corporate Sustainability

In a very disappointing turn of events, the European Union is expected to pass an “omnibus” proposal to supposedly simplify corporate sustainability rules in an effort to increase regional competitiveness and respond to Trump’s promise to scrap regulations.

Under the new draft proposal, only companies with more than 1,000 employees and a net turnover exceeding EUR 450 million would be subject to the rules' obligations. This is a drastic change from existing parameters, which currently apply to firms with more than 250 employees and over EUR 40 million in revenue. More importantly, this would also mean cancelling the EU’s plan to adopt sector-specific reporting standards.

The document also detailed plans to delay the CSDDD, the EU’s due diligence law which seeks to fix human rights and environmental issues in the supply chains of EU corporations.

Whereas countries like Germany and France have explicitly supported looser legislation on corporate sustainability, other EU members have protested saying that these rules are key to upholding the Union’s values on the environment, as well as human rights.

To read more on the European Union’s efforts to promote sustainable fashion, and whether it will have the desired effect, click here.