
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.

Cosmetics Europe has launched a legal action against the European Union, challenging parts of Directive (EU) 2024/3019 that impose extended producer responsibility (EPR) on cosmetic manufacturers. Filed on 7 March 2025, the case highlights major compliance and cost implications for stakeholders across the chemicals value chain.
Directive (EU) 2024/3019, adopted in November 2024, recasts the urban wastewater treatment rules. It introduces an EPR scheme aimed at tackling micropollutants by requiring certain industries—including cosmetics—to contribute financially to advanced wastewater treatment technologies.
Cosmetics Europe, the industry’s main representative body, argues that the inclusion of cosmetics in this regulatory framework lacks sufficient justification. In its legal submission (Case T-169/25), the association seeks the annulment of Articles 9, 10, Annex III, and part of Article 30.1(c) of the Directive.
The legal challenge is underpinned by six core arguments. These include claims of a failure to provide adequate reasoning for targeting the cosmetics sector and reliance on inaccurate data. The association also contends that the Directive violates EU principles such as legal certainty, proportionality, and the polluter-pays principle.
Critically, the lawsuit warns that affected companies face significant financial burdens without clear evidence that the benefits of so-called quaternary wastewater treatment justify the cost. Moreover, producers are reportedly unclear about their obligations, introducing regulatory uncertainty at a time of intensifying compliance pressure across the chemicals ecosystem.




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