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On 13 October, EP’s Legal Affairs Committee (JURI) adopted its report on the Omnibus I proposal, revising the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) and aiming to reduce regulatory burden.

MEPs proposed that under the updated CSRD, reporting obligations would now focus on large companies with over 1,000 employees and a turnover exceeding €450 million, as well as listed SMEs, though the latter will benefit from simplified requirements and phased implementation. The CSDDD, meanwhile, would apply to very large enterprises with over 5,000 employees and a turnover above €1.5 billion, along with companies operating in high-risk sectors such as mining, textiles, and agriculture, where supply chain risks related to human rights and environmental harm are most significant.

For companies falling outside the revised scope, sustainability reporting will remain voluntary, aligned with European Commission guidelines. To prevent larger firms from indirectly imposing reporting obligations on their smaller suppliers, the new rules explicitly prohibit requests for information beyond what is voluntarily provided. Additionally, sector-specific reporting requirements will now be optional, while existing sustainability reporting standards will be streamlined to prioritise quantitative data and further reduce administrative and financial burdens for businesses. Additionally, the CSDDD now adopts a proportional approach to due diligence, requiring companies to assess and mitigate risks primarily within their direct supply chains rather than extended networks.

CLECAT welcomes the JURI Committee’s decision to simplify sustainability reporting and due diligence rules, recognising it as a pragmatic step toward reducing unnecessary administrative burdens while preserving core environmental and social protections. This is important for small and medium-sized freight forwarders as we expect the amount of information required by their clients in the scope of the CSRD, including GHG emissions from transport operations, to be proportionate. CLECAT has consistently advocated for proportionate, risk-based regulations that avoid overloading businesses with excessive compliance costs. The revised rules align with our long-standing position that sustainability policies should be effective, enforceable, and tailored to operational realities, ensuring that companies can focus on meaningful decarbonisation efforts rather than bureaucratic hurdles.

The Parliament will vote on the JURI report in Plenary session next week. If confirmed, negotiations will start with the Council, which adopted its negotiating mandate in June 2025.

Source: European Parliament