
EU Sustainability Reporting Directive 2026/470 Narrows CSRD Scope and Eases Corporate Due Diligence Burdens
The EU has narrowed mandatory sustainability reporting and due diligence duties, with new protections for smaller value-chain partners.

The European Parliament has adopted its position on the upcoming European Water Resilience Strategy, signalling a significant policy shift for industries across Europe. The strategy calls for binding water efficiency targets, modern infrastructure investment, and a phased ban on PFAS. With formal proposals expected from the European Commission before summer 2025, manufacturers, chemical handlers, and water-intensive sectors should prepare for a wave of compliance and innovation demands.
Parliament’s resolution, approved by a large majority (470 in favour, 81 against), urges the Commission to adopt basin-specific water abstraction limits and sectoral efficiency targets. The strategy also addresses the EU’s worsening water quality, noting that less than 40% of surface waters currently meet good ecological status under existing legislation.
A key feature is the call for stricter regulation of water pollutants, including pharmaceutical residues, fertilisers, microplastics, and PFAS. These so-called “forever chemicals” are widely used in industrial applications but are linked to long-term environmental and health risks due to their persistence and mobility in water systems. The Parliament is pushing for a complete phase-out of PFAS wherever safer alternatives are available.
To enable compliance, MEPs are pressing for dedicated EU funding to support infrastructure upgrades, leak detection technologies, water recycling systems, and AI-powered monitoring tools. Companies using large volumes of water—such as in agriculture, semiconductors, or textiles—are expected to face new expectations for water reuse, digital tracking, and system optimisation.
Rapporteur Thomas Bajada stressed that resilience must be built into every sector.
“Our people – our families, farmers, and businesses – deserve clean, secure, and affordable water. That means moving from promises to real, binding action. We cannot afford to treat water as infinite. That is why this report calls for enforceable water efficiency and abstraction targets – sector by sector, basin by basin. We call for a strong EU-wide response to pollution, including the full phase-out of PFAS wherever safe alternatives exist. Because these ‘forever chemicals’ have no place in a sustainable future.”
The strategy will also focus on adaptation, especially in regions vulnerable to drought and flooding—like the Mediterranean and outermost EU territories. Measures will require regional governments and companies to factor water resilience into land use, energy, and industrial planning.
The strategy is aligned with broader EU initiatives, including the Green Deal and the Chemicals Strategy for Sustainability. It complements legislation such as the Water Framework Directive, REACH, and the Drinking Water Directive, reinforcing a layered approach to water governance and chemical safety.




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