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EU Parliament approves deal to weaken corporate sustainability laws

Published by Global Banking & Finance Review

Posted on December 16, 2025

1 min read

· Last updated: January 20, 2026

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BRUSSELS, Dec 16 (Reuters) - The European Parliament gave its formal approval on Tuesday to scale back the EU's corporate sustainability laws, clearing one of the final legal hurdles before the

EU Parliament Approves Changes to Corporate Sustainability Laws

BRUSSELS, ‌Dec 16 (Reuters) - The ‍European ‌Parliament gave its formal approval ⁠on ‌Tuesday to scale back the EU's corporate sustainability ⁠laws, clearing one of the ​final legal hurdles before ‌the changes ⁠can pass into law.

The European Parliament voted to ​approve the changes, with 428 lawmakers in favour, 218 against ​and ‍17 abstentions.

EU ​countries will give their final approval to the deal in early 2026 - a formality that ⁠is expected to wave through the ​amendments so they can pass into law.

(Reporting by Kate Abnet, ‌Benoit Van Overstraeten, Editing by Charlotte Van Campenhout)

Key Takeaways

  • The European Parliament approved changes to EU corporate sustainability laws.
  • The vote passed with 428 in favor and 218 against.
  • Final approval by EU countries is expected in early 2026.
  • The changes aim to scale back existing sustainability regulations.
  • The amendments are expected to pass into law after final approval.

Frequently Asked Questions

What is corporate sustainability?
Corporate sustainability refers to a company's commitment to conducting business in an ethical manner that considers environmental, social, and economic impacts, aiming for long-term viability while minimizing negative effects.
What are EU regulations?
EU regulations are legal acts of the European Union that are binding in their entirety and directly applicable in all member states, ensuring uniformity in laws across the EU.
What is compliance in finance?
Compliance in finance refers to the processes and policies that ensure a company adheres to legal standards, regulations, and internal policies to avoid legal penalties and maintain ethical standards.
What is the role of the European Parliament?
The European Parliament is one of the key institutions of the European Union, responsible for representing EU citizens, debating and passing legislation, and overseeing other EU institutions.

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