Late change reinstates some EU reporting rules

The EU’s plan to reduce the burden of climate reporting has been revised again. A deal between the European Commission (the executive body) and member states has reduced the employee threshold for the Corporate Sustainability Reporting Directive (CSRD) reporting from 1,750 to 1,000. This reduction means that some mid-sized companies that were previously excluded from environmental reporting by an earlier agreement will now have to report on issues including climate financial risks, greenhouse gas (GHG) emissions, carbon reduction plans and water usage.

In February 2025, the Commission issued Omnibus I proposals to simplify sustainability regulations (see EU climate reporting: simplification is not simple). Omnibus I proposed to exempt smaller companies from environmental reporting under the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD).