This 'stop-the-clock' part concerns the two-year postponement of mandatory sustainability reporting (CSRD). This means that large companies, which are not public interest entities (PIEs), will be required to report on CSRD from the 2027 financial year, and listed SME’s from the 2028 financial year. In addition, there is a one-year postponement (from 2027 to 2028) for the directive on appropriate due diligence measures on human rights and environmental impacts in the value chain (CSDDD).
With this approving vote, the European Parliament, the Council and the Commission have now all shown their support regarding the proposed postponement. It is therefore to be expected that the final legal text will be available shortly, for member states to transpose into national legislation (with a deadline of 31 December 2025).
The ‘stop-the-clock’ vote gives clarity on when companies will be expected to comply with the CSRD or CSDDD. For more information on what this postponement means, see our previous article.
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