The European Council has officially endorsed a key directive aimed at postponing corporate sustainability reporting and due diligence requirements, providing businesses with greater legal certainty and regulatory relief.
The decision, part of the broader ‘Omnibus I’ simplification package, temporarily halts the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), responding to industry concerns about regulatory complexity and compliance burdens.
Key Measures:
- CSRD Delay: Large companies and listed small and medium-sized enterprises (SMEs) will now have an additional two years before they are required to begin reporting.
- CSDDD Delay: Compliance deadlines for the largest corporations have been extended by one year.
- Objective: The postponement aims to streamline administrative processes, reduce bureaucratic red tape, and enhance the EU’s economic competitiveness.
Polish EU Minister Adam Szłapka welcomed the decision, stating: “This is a first step in cutting red tape and making the EU more competitive.”
The European Parliament is set to vote on the urgent adoption of the directive on April 1. If approved, the delays will take effect immediately, offering companies additional time to align with sustainability regulations without disrupting business operations.
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