MEPs Reject Mandate on Simplified Sustainability & Due Diligence Rules Ahead of November Vote

Key Takeaways

• Mandate Rejected: MEPs voted 318–309 to reject the Legal Affairs Committee’s proposal to simplify sustainability reporting and due diligence obligations.
• November Vote Scheduled: Parliament will revisit the file and vote on amendments during the plenary session in Brussels on November 13.
• Part of the Omnibus I Package: The proposal stems from the European Commission’s Omnibus I simplification package, introduced in February 2025 to ease corporate compliance burdens.
• Government Position Already Set: EU governments adopted their stance on June 23, paving the way for negotiations once Parliament finalizes its own.
• Debate Over Balance: The rejection highlights divisions between those seeking reduced red tape for companies and those warning against weakening sustainability and human rights protections.

Deep Dive

The European Parliament has rejected a draft mandate that sought to streamline sustainability reporting and due diligence obligations for companies, setting the stage for a renewed debate and a fresh vote next month.

In a narrow outcome, 318 MEPs voted against, 309 voted in favor, and 34 abstained, blocking the Legal Affairs Committee’s October 13 proposal to simplify parts of the EU’s sustainability framework. The proposal formed part of the European Commission’s Omnibus I package, introduced in February to reduce administrative burdens on businesses and delay certain compliance obligations under existing laws.

With the rejection, Parliament will now take up the issue again during its next plenary session in Brussels on November 13, when amendments to the text will be voted on before formal negotiations with EU governments can begin. Member States had already adopted their position on June 23, and both sides are aiming to finalize the legislation by the end of 2025.

The setback underscores the political fault lines within Parliament over the balance between cutting red tape and maintaining strong corporate accountability. Supporters of the simplification effort argue that it’s needed to keep European businesses competitive, while critics warn it risks watering down key elements of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

Until the November vote, the future of the EU’s sustainability simplification agenda remains uncertain, with MEPs now under pressure to find common ground between administrative efficiency and regulatory integrity.

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