No agreement in the European Parliament on a position on simplifying sustainability reporting

On 22 October 2025, the European Parliament rejected the mandate adopted by the Legal Affairs Committee (JURI) on 13 October to simplify sustainability reporting under the CSRD and due diligence obligations under the CSDDD. As a result, the EU Parliament will vote on amendments to the JURI position on 13 November 2025. The European Parliament emphasises the goal of reaching an agreement with the Council of the European Union on the simplifications by the end of 2025. The Council of the European Union had already agreed on its position on the simplifications on 23 June 2025.

Background:

On 26 February 2025, the European Commission published the Omnibus I package with proposals to reduce red tape for businesses. These proposals focus in particular on the so-called Substance Proposal to amend the Accounting Directive (Directive 2013/34/EU), the CSRD (Directive (EU) 2022/2464) and the CSDDD (Directive (EU) 2024/1760) as well as the Audit Directive (Directive 2006/43/EC). The aim of the Substance Proposal with regard to amendments to the CSRD is to achieve significant simplifications in the requirements for sustainability reporting. Formally separate from this, a proposal was submitted to postpone the temporal scope of application of the CSRD and the CSDDD (‘Stop-the-Clock’ Directive), which has now been published as Directive (EU) 2025/794 in the Official Journal of the EU.