The voting was held on 13 November 2025 and concluded with 382 in favour, 249 opposed, and 13 abstentions.
The approval sets out a negotiating position with EU member states, which is set to commence on 18 November.
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Lawmakers intend for final legislation to be completed by the end of 2025.
Legal Affairs Committee rapporteur Jörgen Warborn said: “Today’s vote shows that Europe can be both sustainable and competitive. We are simplifying rules, cutting costs, and giving businesses the clarity they need to grow, invest, and create well-paying jobs.”
The review of these rules forms part of a broader legislative agenda designed to reduce regulatory demands for companies operating within the region.
Under the adopted position, only companies employing more than 1,750 people and recording annual net turnover greater than €450m would need to complete social and environmental reporting as mandated by the EU.
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By GlobalDataThis narrows the scope of current rules, which previously included smaller firms.
The requirements for reporting under EU taxonomy regulations standards for classifying sustainable investments would also apply exclusively to companies above this staffing and turnover threshold.
The approved changes seek to simplify existing sustainability reporting standards, reducing both the number of required qualitative details and overall reporting complexity.
Industry-specific reporting would become voluntary rather than compulsory, representing a shift from earlier obligations that applied across multiple sectors.
According to MEPs, these amendments aim to make compliance more straightforward for affected businesses.
In relation to company supply chains, large corporations covered by the updated requirements would not be permitted to demand more information from smaller business partners than what is outlined in voluntary standards.
This provision is intended to protect smaller firms from added administrative work stemming from their relationships with larger customers.
Due diligence duties would now apply only to businesses with more than 5,000 employees and an annual net turnover exceeding €1.5bn.
Companies affected by these due diligence rules would not be obliged to develop transition plans compatible with the Paris Agreement objectives for climate change mitigation.
However, they will remain subject to fines if they fail to comply with due diligence requirements.
The European Commission (EC) and national governments are responsible for issuing guidance on these rules.
When violations occur, legal liability will fall under national law rather than EU-wide regulation; offending companies must provide full compensation to individuals or groups who suffer damages as a result.
The Parliament urged the EC to create a digital portal offering free access to standard templates, guidance materials, and comprehensive information about EU-wide reporting requirements.
This tool would complement the existing European Single Access Point for business information.
The current proposal is included in the Omnibus I simplification package introduced by the Commission on 26 February 2025 as part of ongoing efforts to streamline regulatory burdens for businesses.
Just over a week later, a plenary vote narrowly failed to pass those specific changes, with 318 voting against, 309 in favour, and 34 abstaining.
Later in the month, environmental non-profit groups Canopy and Cascale raised concerns about MEPs’ decision to block the Omnibus compromise package.
