The European Union has reached a landmark agreement aimed at scaling back its corporate sustainability laws. This decision follows extensive lobbying by companies and governments, notably the United States and Qatar, concerned that existing regulations stifle competitiveness.
The reforms will impact the majority of businesses previously under these laws, requiring social and environmental reporting only from companies with over 1,000 employees and a net annual turnover exceeding 450 million euros. Non-EU companies must meet this threshold within the EU to comply.
The largest corporations, with 5,000+ employees and a turnover over 1.5 billion euros, are obligated to perform due diligence to prevent harm to people and the environment. Final approval is pending but expected to pass smoothly.
(With inputs from agencies.)