Current Law | Commission Proposal | Council Position | European Parliament Latest Position | |
|---|---|---|---|---|
CSRD Scope | For a company to come into scope, it must meet two of three criteria, one of which is having 250 employees. | Companies / groups must have 1,000 employees to come into scope. | Companies / groups must have 1,000 employees + €450 turnover to come into scope. | Companies / groups must have 1,750 full-time employees + €450m turnover to come into scope. |
CS3D Scope | EU companies / groups must have 1,000 employees and €450m turnover and non-EU companies must have €450m turnover in the EU to come into scope. | No change proposed. | EU companies / groups must have 5,000 employees and €1.5bn turnover and non-EU companies must have €1.5bn turnover in the EU to come into scope. | In line with the Council’s position. |
CS3D Climate Transition Plans | In-scope companies must adopt and put into effect a climate transition plan, which aims to ensure through “best efforts” that the business model and strategy of the company are compatible with the transition in line with the Paris Agreement | Dropped the requirement for the climate transition plan to be “put into effect”; instead climate transition plan must include “implementing actions”. | Plans must include “implementing actions”, to ensure contribution to the Paris Agreement through “reasonable efforts”. | Climate transition plan obligations have been removed. |
CS3D Supply Chain Risk | Requirement to identify and assess actual and potential adverse impacts in the value chain. | Narrow the diligence obligation to ‘direct’ or ‘tier 1’ business partners, unless the company has plausible information to suggest adverse impacts arising in the operations of indirect business partners. | Switch to risk-based approach, focusing diligence on areas where actual and potential adverse impacts are most likely to occur. No requirement for companies to perform comprehensive mapping exercise but instead to conduct a more general scoping exercise, based on reasonably available information. | Companies must take a risk-based approach, where necessary information is requested where there is a prospect of an adverse impact in their business partners’ activities. |
CS3D Civil Liability Regime | Harmonised civil liability regime, with potential for companies in intentional or negligent breach of requirements to be liable for damage caused. | No harmonisation: member states can decide to introduce civil liability regime – not mandated at EU level. | In line with the Commission’s position. | In line with the Commission’s position. However, a review of this position introduced. |