The European Parliament is considering a proposal to significantly relax sustainability reporting requirements. The majority of European companies could potentially avoid complying with ESG standards.
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) proposed amendments to the EU’s sustainability directives. The proposal includes raising the thresholds for mandatory reporting, which could exempt a large number of companies from several European ESG directives.
Specifically, ECON suggests easing requirements under the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Taxonomy Regulation, and the Carbon Border Adjustment Mechanism (CBAM).
Key proposals from ECON include:
- Increasing the threshold for mandatory ESG reporting. The committee proposes that only companies with over 3,000 employees and annual turnover exceeding €450 million must comply. Currently, ESG directives apply to all European companies with more than 1,000 employees and revenues over €50 million.
- Reducing the number of mandatory indicators in the European Sustainability Reporting Standards (ESRS) to 100. Presently, the standards include over 1,100 indicators, most of which are compulsory for ESG reporting.
- Limiting due diligence obligations to direct business partners only, excluding the need to assess and monitor subcontractors.
According to the initiative’s authors, these amendments could allow approximately 80% of European companies to avoid mandatory ESG reporting, significantly reducing the burden on public authorities.
Although raising thresholds may relieve many companies from sustainability reporting obligations, this approach could also have negative consequences. Investors and partners increasingly focus on ESG metrics when choosing companies to work with. In fact, promoting ESG practices was named one of the key trends in the Web3 industry for 2025.
According to Violaine Champetier de Ribes, ESG Officer at CoinsPaid, compliance with ESG requirements for crypto service providers is not only important but mandatory in today’s world, as environmental, social, and governance responsibilities directly impact the long-term development of the industry.
“Our ESG policy is the first step of our strategic roadmap meant to gradually integrate sustainability into our core operations while fostering trust among users, employees, partners, and regulators. CoinsPaid is willing to align with ESG standards, proving that responsible crypto payments aren’t just possible — they’re essential for long-term industry growth,” concludes Violaine.
