EPP forms controversial alliance with far-right in EU Parliament on Corporate reporting
The European People’s Party (EPP) has formed an unprecedented alliance with far-right groups in the European Parliament to push through an amendment reducing corporate reporting and due diligence obligations for large companies.
The Parliament approved the EPP-backed position with 382 votes in favor, 249 against, and 13 abstentions, simplifying sustainability reporting and corporate due diligence requirements.
“The conservative EPP group, led by Manfred Weber (CSU), joined forces for the first time with right-wing and far-right groups to submit an amendment that weakens the so-called Supply Chain Law,” said German Green MEP Daniel Freund.
“Companies will no longer be held accountable for serious human rights violations in their supply chains and will face no legal consequences if products are made using child or forced labor.”
Under the new rules, only companies with an average of over 1,750 employees and a net annual turnover exceeding €450 million are required to prepare social and environmental reports. Sustainability reporting and risk-based due diligence obligations will also apply only to large companies with more than 5,000 employees and a turnover above €1.5 billion.
Key changes include:
- Reporting standards will be simplified and reduced in scope, with fewer qualitative details required.
- Sector-specific reporting will be optional.
- Smaller companies will be protected from additional reporting demands from larger corporate partners.
- Large companies must adopt a risk-based approach to monitor and address negative impacts on people and the planet, relying primarily on existing information.
- No transition plans are required to align business models with the Paris Agreement.
- Non-compliance fines will be enforced nationally, not at the EU level, with full compensation required for victims.
MEPs also called on the European Commission to establish a digital portal providing free access to templates, guidelines, and all EU reporting requirements, complementing the European Single Access Point.
