EU scales back corporate sustainability laws — Investors warn transparency will suffer
Green Forum
10 December, 2025 at 1:23 PM
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The European Union has reached a provisional agreement to reduce the scope and stringency of two major ESG regulatory frameworks: the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).
Under the deal:
The CSRD will now only apply to companies with more than 1,000 employees and €450 million annual turnover, considerably raising the previous threshold and excluding many mid‑sized firms.
The CSDDD scope was tightened further: it will only apply to firms with over 5,000 employees and a €1.5 billion turnover.
A major requirement — companies preparing mandatory climate transition plans under due diligence rules — has been dropped.
Supporters argue the changes reduce administrative burden on businesses. However, many investors and sustainability experts warn that the roll‑back undermines transparency, making it harder to identify which companies are genuinely committed to low‑carbon operations and responsible supply chains.
The European Ombudsman has formally questioned the European Commission's handling of recent proposals aimed at scaling back corporate sustainability requirements, raising concerns over transparency and procedural compliance.
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DSV – Global Transport and Logistics, the world's largest logistics operator, has launched a solar installation at its warehouse in Łozienica, Poland, in partnership with commercial real estate investor Accolade. The installation will meet the energy needs of Poland's first multi-client warehouse equipped with an AutoStore system.
Etem Gestamp, the Sofia-based joint venture between Viohalco Group and Spain's Gestamp Group focused on aluminium extrusion and processing for the automotive industry, and Rezolv Energy, the Actis-backed independent power producer, have signed a 10-year virtual power purchase agreement (VPPA) in Bulgaria. The VPPA will see Etem Gestamp buy electricity from Rezolv Energy's 461MW 'Vifor' wind farm, which is about to come onstream in Buzău County, Romania. It is the first cross-border wind PPA that has been publicly announced in Bulgaria.
DP World has launched a five-year coastal restoration programme to create underwater "forests" of native seaweed to boost marine life near the Constanța South Container Terminal on the Black Sea.
