EU Sustainability Reporting: Parliament Backs New CSRD Thresholds

EU Parliament committee backs CSRD simplification, proposing thresholds of 1000+ employees and €450 million turnover; plenary vote next.

On Monday, 13 October, the EU Parliament´s position on the corporate sustainability Omnibus proposal – including mandatory sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) – was voted on by the JURI Committee (the European Parliament´s Committee on Legal Affairs).

Regarding reporting thresholds, the Parliament is proposing that the CSRD applies to companies with over 1000 employees and €450 million net turnover.

EU Parliament Advances CSRD Omnibus Proposal

The vote was 17 for, 6 against, and 2 abstentions with MEP Jörgen Warborn (rapporteur on simplified sustainability reporting and due diligence requirements) calling it a “strong support” for simplification.

This JURI Committee vote is a strong endorsement of the EU Parliament´s position as it enters a plenary vote in the week starting 20 October. The plenary vote will determine the position the Parliament will bring into the final trilogue negotiations with the EU Commission and EU Council, which are scheduled to run through November and December.

While not final, the vote indicates that EU companies with fewer than 1000 employees will likely be exempted from mandatory EU sustainability reporting, as the EU Commission and EU Council also proposed a threshold of 1000 employees. However, the Commission has proposed different financial thresholds (> EUR 50M net turnover​ OR​ > EUR 25M balance sheet​) to the Council and the Parliament who have both proposed > EUR 450M net turnover. The table below compares the three proposals put forward with the original CSRD thresholds and shows the drop in the number of entities that would be in scope under the various proposals according to a recent working paper by Rasche et al (2025).

Source: Rasche et al., Scenarios for CSRD Scope Amendments, SSRN, 2025

Timeline for Final CSRD Adoption and Transposition

Looking forward, a plenary vote in the EU Parliament is expected in the week starting 20 October. Subsequently, the EU Parliament, the EU Commission, and the EU Council will enter trilogue negotiations throughout November and December to negotiate the final legal text for the revised directive.  The final trilogue session is currently scheduled for 8 December (subject to change), indicating that the EU Commission still appears to be on track to adopt the revised directive by 31 December 2025. Transposition would subsequently be expected by Member States approximately 18 months following adoption.