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The European Council and Parliament Have Reached an Agreement to Simplify Sustainability Reporting and Due Diligence Requirements, Enhancing the Competitiveness of the EU
2025-12-19
European Council

On December 9, 2025, the rotating presidency of the EU Council and representatives of the European Parliament reached a provisional agreement aimed at enhancing the EU's competitiveness by simplifying sustainability reporting and due diligence requirements. The agreement will streamline provisions under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D), with key measures including reducing reporting burdens on businesses and limiting the "cascading effect" of compliance obligations on SMEs (to prevent excessive regulatory pressure on small and medium-sized enterprises).

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