On 3 April 2025, the European Parliament voted overwhelmingly in favor of postponing the implementation of the Corporate Sustainability Reporting Directive (EU) 2022/2464 (CSRD) and the Corporate Sustainability Due Diligence Directive (EU) 2024/1760 (CSDDD).
This delay, proposed as part of the European Commission's "Omnibus" simplification package, received 531 votes in favor, 69 against, and 17 abstentions, reflecting significant backing for the measure aimed at reducing administrative burdens on businesses.
The CSRD delay means that large companies, previously scheduled to begin reporting in 2026, will now need to start reporting on the 2027 financial year, with publications due in 2028. Small and medium-sized listed enterprises will now begin reporting on their 2028 financial year, with reports due in 2029. The CSDDD’s deadline for EU Member States to transpose the regulations into national law has been extended to 26 July 2027. These changes are expected to provide companies with additional time to prepare and align their operations with sustainability reporting and due diligence obligations.
Critics, including environmental advocacy groups, argue that the delay could undermine the EU's Green Agenda and jeopardise its leadership on climate action. Global Witness campaigner Beate Beller emphasised that the delay risks diluting climate protection efforts, particularly when urgent climate action is needed. Furthermore, French MEP Manon Aubry described the move as a "scandal," suggesting it could cater to corporate interests at the expense of broader environmental and human rights goals.
On the other hand, supporters, including the European Commission, view the delay as a necessary step to bolster business competitiveness in the face of global economic instability. The Omnibus package, designed to reduce reporting requirements by 25% for large private companies and 35% for SMEs, aims to reduce bureaucracy while supporting the EU's economic growth. Additionally, many companies are already voluntarily committing to CSRD compliance, with 67% of surveyed firms planning to proceed with sustainability reporting, either due to legal obligations or stakeholder pressure.
While the Omnibus package is expected to simplify certain aspects of sustainability reporting, the European Commission is still working on refining the scope of businesses required to report and further adjustments to the regulatory framework. As such, businesses are left navigating a period of uncertainty. However, the extended timelines provide companies with some breathing room, while ongoing reforms promise a clearer path forward.
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