EU lawmakers accused of pushing ‘Trumpist agenda’ as they vote to curb sustainability laws with far-right support

EU lawmakers have been accused of “betrayal” after the European Parliament voted to slash corporate sustainability requirements last week.

In a much-anticipated vote, a rightwing proposal to radically limit the power of two of the EU’s flagship sustainability laws – designed to hold companies accountable for their environmental and social impacts – passed thanks to the votes of far-right MEPs.

“This isn’t just another policy setback, it’s a betrayal of Europe’s social and environmental commitments,” said Nele Meyer (pictured), director of the European Coalition for Corporate Justice, a campaign group backing stronger laws for corporate accountability.

It is the latest blow to EU laws on corporate sustainability reporting, which were lauded by supporters of the “business for good” movement when first adopted, but came under threat in recent months, as the Commission has sought to cut red tape to improve, it claims, the bloc’s competitiveness.

The EU Commission in February submitted to the Parliament a so-called “Omnibus” package of directives that it said would simplify rules that require companies to disclose their impact on society and the planet, which allegedly created a burden for businesses.

The initial package came under fire from proponents of corporate sustainability as it planned to substantially reduce the number of businesses required to report on their social and environmental impact, soften reporting requirements and delay the implementation of new rules.

But last month, the members of the Legal Affairs Committee, which represents Parliament throughout the legislative process of the Omnibus package, voted to support a proposal to weaken corporate sustainability requirements even further. Centrist and leftwing parties had agreed to it, saying they wanted to avoid a “complete dismantling” of the regulations under far-right influence; however MEPs then rejected it in a full parliamentary vote.

• Read more: ‘We are ending the Green Deal!’: far-right MEPs celebrate as EU Parliament rejects latest sustainability simplification text

Despite hopes that sustainability regulations could still be salvaged, last week centre-right parties tabled several amendments to the text that further diminished sustainability requirements for businesses, gaining the support of the far-right. The amended text passed the full parliamentary vote as a result, to the dismay of corporate sustainability supporters.

Mariana Ferreira, sustainable finance policy officer at the WWF European Policy Office, said: “These laws that provided hope, security and promise for a fairer and more sustainable future have been reduced to performative exercises that have little effect on the real needs of people, nature and businesses.

“This is not a time to slow down on our path to a more sustainable economy, but the EU is moving in reverse.”

‘Trumpist agenda’ and party politics

Ana Catarina Mendes (pictured), vice-president of the European Parliament’s Socialists and Democrats centre-left grouping, attacked rightwing parties for partnering with the far-right: “By teaming up with the far-right, they are implementing a Trumpist agenda without rules and obligations, dismantling our EU standards and our model of society built on values such as accountability, protection, and rights.”

Far-right MEPs hailed the victory as a further step against the EU’s broader ‘Green Deal’ agenda (a series of policy measures aiming to make the bloc carbon neutral by 2050), which they oppose. 

Following the vote, Mary Khan, German MEP from the far-right Alternative für Deutschland party, posted on X: “Today we achieved a real turning point in the European Parliament: a new right-wing majority has weakened the harmful requirements of the Green Deal and cleared the way to finally free thousands of companies from unnecessary reporting obligations… The first step has been taken – we will continue working to stop the Green Deal entirely.”

Climate transition plans

The vote focused on one aspect of the Commission’s Omnibus plan: a directive to amend two sustainability reporting laws, the Corporate Sustainability Reporting Directive (CSRD) (which requires companies to report on their own social and environmental impacts) and the Corporate Sustainability Due Diligence Directive (which mandates businesses to assess, and take action against, harmful impacts in their supply chains).

The new text further narrows the scope of businesses covered by the laws to only the very biggest companies –  those with more than 5,000 employees and turnover of over €1.5bn for the CSDDD, and those with more than 1,750 employees and turnover of over €450m for the CSRD. It removes requirements for systematic assessment of supply chains’ harmful impacts and scraps an EU-wide civil liability provision for victims to hold companies accountable.

This isn’t just another policy setback, it’s a betrayal of Europe’s social and environmental commitments

The text also removes a requirement for companies to produce and implement a climate transition plan under the CSDDD regulation.

However investors and the European Central Bank have warned that if companies are not required to disclose clear information about their sustainability and supply chain performance, it could make it difficult for investors to make informed decisions and as a result drive them away.

In an opinion on the Omnibus proposal published in May, the ECB highlighted the importance of retaining the requirements for transition plans in the CSDDD, and ensuring they were put into effect, notably because “transition plans enable financial institutions, investors, central banks and prudential supervisors to assess potential financial risks”.   

Jörgen Warborn, rapporteur on simplified sustainability reporting and due diligence requirements, who put forward the amendments, said: “If we are going to solve the climate issue and sustainability issues in general, we have to see the companies as our friends. We have to work more with a carrot than with a stick. It's through them that we actually can reduce emissions. If we push them too hard and scare them… they will go elsewhere.”

The law will now enter inter-institutional discussions (known as “trilogue”) to reach a final agreement between Parliament, the Council of national ministers representing each country, and the Commission, with a final result expected by the end of this year.

Top image: Jörgen Warborn, centre, sits in the European Parliament on 13 October © European Union 2025