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The reduction of reporting obligations and due diligence requirements approved by the European Parliament opens a complex scenario for the blue economy and the seafood value chain. The negotiating position adopted aims to simplify compliance, restricting the obligations to very large enterprises. Yet the indirect effects on the fish sector remain significant and require careful evaluation.
Sustainability reporting duties will apply only to companies with more than 1,750 employees and revenue above €450 million, while mandatory due diligence will concern only groups exceeding 5,000 employees and €1.5 billion in turnover. Most seafood companies—largely composed of SMEs—therefore remain outside the strict regulatory perimeter, but they are not outside the arena of market expectations.
What sustainability reporting really means
Sustainability reporting is an organic system of information on a company’s environmental, social and governance impacts. It is more than a descriptive document: it becomes a genuine non-financial statement alongside the financial accounts. The company reports how it uses natural resources, energy and water, how it manages emissions and waste, and which policies it adopts for safety, welfare and equal treatment.
In the seafood sector these elements relate to fishing effort, stock protection, impact management in aquaculture, traceability of raw materials, animal welfare and working conditions along the value chain. The reduction in mandatory requirements does not eliminate these needs; it simply shifts the focus toward a voluntary approach driven largely by markets and institutional buyers.
Due diligence: from legislation to the seafood chain
Due diligence is the process through which a company identifies, prevents and mitigates its negative impacts on people and the environment throughout the supply chain. In the seafood sector this means assessing how species are caught or farmed, the working conditions on board vessels and at processing plants, and the environmental and social risks emerging at landing ports, in transformation and in logistics.
With the regulatory lightening, obligations apply only to a small number of large enterprises. Nevertheless, these companies will continue requiring robust guarantees from all suppliers—especially when dealing with seafood sourced from third countries or complex supply chains. The cascade effect of due diligence therefore remains constant even within a softer regulatory framework.
Higher thresholds and simplified obligations: what changes
The increased thresholds sharply reduce the number of companies subject to mandatory rules. Sector-specific reporting becomes voluntary and standards will be simplified, with fewer qualitative requirements and more flexibility for SMEs, which cannot be overburdened by large commercial partners.
On the due diligence front, the requirement to draw up a transition plan aligned with the Paris Agreement has been removed. Liability for violations falls to national systems, with sanctions defined by Member States. For the seafood sector, this means a lighter administrative burden but also a potential slowing of the alignment between legal obligations and established ESG practices.
Opportunities and risks for the seafood value chain
For small and medium-sized seafood companies, the reduction of reporting and due diligence duties is an administrative relief. However, key European markets will continue to demand solid data on catch origin, working conditions, traceability and environmental impacts. Buyers operating under internal ESG policies or within large-scale retail will maintain high standards even without strict legal requirements.
For this reason, investing in traceability systems, data management and integrated reporting can become a competitive advantage. Those who choose a minimal approach risk losing space in international value chains.
The EU digital portal as a resource for the maritime economy
The creation of a single EU digital portal with guidelines, templates and information on reporting requirements—part of the simplification package the European Parliament intends to introduce—may offer an important opportunity. Even if many operators will not be subject to mandatory reporting, free tools can support the production of credible, market-aligned reports.
Consortia, producer organisations and industry associations can use this platform to guide companies through lighter yet structured sustainability pathways, strengthening the overall competitiveness of the sector.
Next steps and the strategy the sector needs
The position approved by the European Parliament now opens negotiations with the Council and Commission, with the aim of finalising legislation by the end of 2025. The seafood sector can use this transition phase to reinforce systems for traceability, data collection and management of environmental and social impacts.
Sustainability is no longer merely a matter of legal obligation but a central lever of positioning and reputation. The industry will be more competitive if it can tell—and above all demonstrate—the quality of its practices at sea and on land.
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L’articolo EU reporting & due diligence reform: impacts on seafood proviene da Pesceinrete.
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