In a significant development for companies operating under EU regulations, the European Commission and Parliament have moved to ease the pressure of upcoming sustainability compliance deadlines. On 26 February 2025, the Commission released a set of proposals—collectively called the Omnibus Package — aimed at reducing the administrative burden on businesses, particularly around sustainability reporting and due diligence. Although proposed separately, the so-called "Stop-the-Clock Directive" aligns with the goals of the Omnibus Package by providing companies with much-needed additional time to prepare for the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

What Changed?

The Stop-the-Clock Directive was officially approved by the European Parliament on 3 April 2025 and received final backing from the Council on 14 April. It was subsequently published in the Official Journal of the EU on 16 April 2025, making it legally binding.

Here are the key takeaways:

• CSRD Implementation Delayed by Two Years
  Large companies that have not yet started reporting, along with listed SMEs, will now have two additional years before CSRD requirements apply to them.
• CSDDD Postponement by One Year
  The deadline for transposing the due diligence directive into national law, as well as the first phase of its application (targeting the largest companies), is postponed by one year.

Why This Matters

These postponements are designed to give both regulators and businesses more time to prepare for the substantial changes coming under the EU’s sustainability framework.

The temporary delay does not signal a step back from the EU's sustainability agenda. Rather, it reflects a strategic pause—allowing for better alignment, improved clarity, and more effective implementation.

What’s Next?

Businesses affected by the CSRD and CSDDD should use this additional time wisely to strengthen their sustainability and internal processes.

Need help navigating these changes?
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