The European Parliament amends the scope of the Corporate Sustainability Act

The European Parliament has voted to relax the scope of the sustainability law, which would require only very large companies to address human rights and environmental issues in their supply chains.

The original draft law stipulated that companies with at least 1,000 employees and a turnover of more than €450 million would have to comply with the regulations. The new rules would apply to companies with at least 5,000 employees and a turnover of at least €1.5 billion.

The Corporate Sustainability Act imposes obligations on companies to improve human rights and environmental standards in their supply chains, for example, or face penalties of up to five percent of their global turnover.

The conservative European People's Party faction emphasized that the proposal simplifies regulations and reduces costs for companies, thereby promoting the competitiveness of European companies.
The European Parliament recommended entering into negotiations with member states on the final wording of the law.

(reuters, sie)