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The European Parliament’s Committee on Legal Affairs voted Monday to amend its position on the European Union’s (EU’s) landmark corporate accountability law, introducing a series of changes to companies’ sustainability reporting and due diligence requirements.
The EUs corporate sustainability due diligence directive (CSDDD) was adopted last year and “requires companies to fix human rights and environmental issues in their supply chains, or face fines of 5% of global turnover.” The new changes will result in fewer companies being required to report on sustainability and due diligence.
With the approval to amend the CSDDD, the rules will now apply only to companies with at least €1.5 billion in annual turnover and 5,000 or more employees. The law will also move to eliminate the requirement for the EU to develop an EU-wide civil liability regime. There are also changes in due diligence rules to encourage companies to adopt a risk-based approach.
Many fear that the new changes will undermine corporate accountability since they will only affect very large firms. However, the Commission originally proposed cutting the number of companies required to carry out social and environmental reporting by 80 percent, and the compromise appears to have produced a strong result within the committee—17 in favor, six against, and two abstentions.
Rapporteur Jörgen Warborn, a member of the center-right European People’s Party, discussed the vote positively, saying, “Today’s vote confirms our support for simplification. We are delivering predictability for European companies, with a report that cuts costs, strengthens competitiveness, and keeps Europe’s green transition on track.”
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The EUs corporate sustainability due diligence directive (CSDDD) was adopted last year and “requires companies to fix human rights and environmental issues in their supply chains, or face fines of 5% of global turnover.” The new changes will result in fewer companies being required to report on sustainability and due diligence.
With the approval to amend the CSDDD, the rules will now apply only to companies with at least €1.5 billion in annual turnover and 5,000 or more employees. The law will also move to eliminate the requirement for the EU to develop an EU-wide civil liability regime. There are also changes in due diligence rules to encourage companies to adopt a risk-based approach.
Many fear that the new changes will undermine corporate accountability since they will only affect very large firms. However, the Commission originally proposed cutting the number of companies required to carry out social and environmental reporting by 80 percent, and the compromise appears to have produced a strong result within the committee—17 in favor, six against, and two abstentions.
Rapporteur Jörgen Warborn, a member of the center-right European People’s Party, discussed the vote positively, saying, “Today’s vote confirms our support for simplification. We are delivering predictability for European companies, with a report that cuts costs, strengthens competitiveness, and keeps Europe’s green transition on track.”
The post EU lawmakers loosen business sustainability reporting and due diligence requirements appeared first on JURIST - News.
Continue reading...
Note: We don't have any responsibilities about this news. Its been posted here by Feed Reader and we had no controls and checking on it. And because News posted here will be deleted automatically after 21 days, threads are closed so that no one spend time to post and discuss here. You can always check the source and discuss in their site.