European Parliament Adopts Proposal Delaying the Application Dates of CSRD and CSDDD

This brief was prepared by APCO’s sustainability team in Brussels.  

On 3 April, the European Parliament adopted the “Stop the Clock” Directive, which delays the implementation timelines of the Corporate Sustainability Reporting Directive (CSRD) by two years for certain companies and the Corporate Sustainability Due Diligence Directive (CSDDD) by one year. Adopted through a special fast-track procedure by the European Parliament, the 27 EU Member States will give their final, formal approval in the coming weeks.

The proposal to delay the implementation of the CSRD and the CSDDD is the first part of the European Commission’s First Omnibus Package to simplify sustainability reporting and due diligence rules, as part of its broader efforts to simplify EU legislation. This fast-tracked decision to delay implementation deadlines, backed by four major European political groups, gives time for companies to prepare and comply with sustainability reporting and due diligence requirements.

While this delay eases pressure on companies, attention now shifts to the second part of the Omnibus Package namely the proposed changes to the content of the CSRD and the CSDDD. Despite the sufficient consensus reached to approve the “Stop the Clock” Directive, negotiations on this issue are expected to be politically divisive within the European Parliament. This may create uncertainty as to the final shape of CSRD and CSDDD obligations.

Companies should be agile and ready to continue preparing for compliance, while remaining aware of the risk of external scrutiny and greenwashing risks.

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