The purpose of this article is to familiarise the reader with the concept of stakeholder capitalism in the context of stakeholder theory and to address the question of whether the European Union (EU) is changing course regarding sustainability reporting requirements, which are an integral part of stakeholder capitalism. This article provides a significant contribution to understanding the nature of stakeholder capitalism, which opposes the shareholder capitalism model, and the legislative efforts undertaken by the EU to ensure more sustainable development for member states, an inclusive society that respects human rights. These efforts are now in question. As a result of criticism directed at the European Green Deal and ESG reporting requirements, the EU is introducing legislative changes that dilute and postpone action to achieve ambitious sustainable development goals, including climate goals. This article assesses these changes, concluding that the EU is unlikely to completely change course, but further adjustments and a slowdown in implementing the principles of stakeholder capitalism are to be expected.