EUPublished: 16 December 2025

[Regulatory Update] European Parliament Approves Provisional Agreement on Simplified CSRD and CSDDD Rules — 428 Votes in Favour, 218 Against

Source:European Parliament (plenary adoption, 16 December 2025)

On 16 December 2025, the European Parliament approved, in plenary, a provisional agreement between MEPs and EU governments on updated sustainability reporting and due diligence rules for companies (the CSRD and the CSDDD). The text was adopted with 428 votes in favour, 218 against and 17 abstentions. According to the European Parliament press release, sustainability reporting would apply only to EU companies with more than 1,000 employees on average and a net annual turnover above €450 million. Due diligence obligations would apply to large EU companies with more than 5,000 employees and a net annual turnover above €1.5 billion. The due diligence directive would apply from 26 July 2029, and fines would be capped at 3% of net worldwide turnover. The final text still has to be formally approved by the Council, and the directive will enter into force twenty days after its publication in the Official Journal.

Editor's View

This release reflects the position on 16 December 2025, when the European Parliament approved the provisional agreement. The number of the final directive, its publication date in the Official Journal, its entry into force and the transposition deadlines are not in this source. Whether an individual company is covered is also not in this source.

※ This article is based on official public information from an external source (European Parliament (plenary adoption, 16 December 2025)) and has been analyzed and organized for practical use.

Primary Source (Official)

Related Regulation Information

EU Corporate Sustainability Reporting Directive (CSRD)

The EU Corporate Sustainability Reporting Directive (CSRD) is the foundational EU law governing sustainability reporting, substantially strengthening the earlier Non-Financial Reporting Directive (NFRD). It progressively mandates ESG disclosures based on a double materiality assessment. For non-EU companies, the European Parliament's press release (December 16, 2025) covers companies with net turnover in the EU above €450 million and subsidiaries or branches with turnover above €200 million. Directive (EU) 2026/470 (Omnibus I) was published in the Official Journal on February 26, 2026 and entered into force on March 18, 2026. The press release sets the scope of sustainability reporting at EU companies with more than 1,000 employees on average and net annual turnover above €450 million. The first wave of reporting has already been applying since FY2024 results (reported in 2025), and its effects are spreading through the value chain as companies further down the supply chain face growing requests for data.

See this regulation's full analysis (timeline & business impact)

💡 The overview and schedule for the regulation related to this article can also be found on the Regulatory Gateway Database page.