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.