Sustainability obligations for companies are being reduced

Simplifying EU sustainability obligations: EUDR, CSRD, and CS3D

The European Parliament and the Council of the EU have agreed on several measures to simplify the sustainability obligations that companies would be required to meet in the coming years. The agreement affects, among others, the EU Deforestation Regulation (EUDR), the CSRD reporting directive, and the CS3D due diligence directive.
The agreements reached must be formally approved by the Council and the European Parliament during this month of December, prior to their official publication.

Deforestation Regulation

Regarding the EUDR (EU Deforestation Regulation), the deadlines are extended by one year. Specifically, large companies will have to comply from December 30, 2026, and micro and small companies from June 30, 2027.

A revision of the due diligence obligations is also proposed. On the one hand, due diligence statements would only need to be submitted by companies that place the product on the European market for the first time. In addition, a single simplified statement is planned for micro and small companies.

CSRD and CS3D Directives

In relation to the CSRD (which requires a sustainability report verified by independent auditors), it would only apply to companies with more than 1,000 employees and annual net turnover exceeding €450 million.

As for the CS3D, due diligence would only apply to companies with more than 5,000 employees and annual net turnover exceeding €1.5 billion. The date by which affected companies must comply with this directive is also postponed by one year (until July 2029).