Application of CSRD sustainability reporting

On 3 April 2025, the European Parliament approved the postponement of the application of the legislation on CSRD sustainability reporting and due diligence obligations as proposed by the EU Commission as part of the first EU Omnibus Package (see EAN 10/2025).

The first-time application of the Sustainability Reporting Directive is to be postponed by two years for the second and third wave of companies (‘stop-the-clock’).

In addition, it was agreed that the member states do not have to implement the new due diligence obligations from the CSDDD until 26 July 2027 and that the largest companies will therefore be given one year more time to implement the due diligence obligations.

The European Council also voted in favour of the European Commission's legislative proposal on 26 March 2025. The proposal still needs to be formally approved by the European Council before it can enter into force. In order for the regulations to have direct legal effect for companies, the amendments to the directive and - if not yet transposed - the provisions of the CSRD and CSDDD must first be transposed into national law by the member states.

The press release with the result of the vote has been published on the European Parliament's website.