EU Votes to Scale Back Corporate Sustainability Rules

Businesses and officials in the United States, Qatar, France, and Germany have been urging the EU to relax the rules.

Members of the European Parliament take part in a voting session during a plenary session at the European Parliament in Strasbourg, France, on March 12, 2025. Frederick Florin/AFP via Getty Images

European lawmakers on Nov. 13 voted to scale back corporate sustainability and due diligence requirements to ease reporting burdens for companies operating in the European Union.

The EU’s corporate sustainability due diligence directive (CSDDD) requires companies to address human rights and environmental issues in their supply chains, or face fines equivalent to 5 percent of their global turnover.