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Simplified EU sustainability reporting rules widen corporate liability risks

By Eleonora Rinaldi ( October 16, 2025, 16:43 GMT | Comment) -- Companies subject to EU sustainability reporting rules risk broader and more uncertain legal liability under a simplification proposal currently under negotiation, lawyers have told MLex. Removing conditions detailing legal liability would widen the scope for companies to be held accountable by damaged parties while leaving the final word to national courts. Developments in talks between EU lawmakers and member states suggest this risk is to be expected.Companies subject to EU sustainability reporting rules risk facing broader and more uncertain legal exposure under the simplification proposal currently being negotiated by member states and lawmakers, Gabrielle Holly, chief adviser at the Danish Institute for Human Rights, and David Frydlinger, business lawyer at law firm Cirio, told MLex....

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