European Union member states have backed a proposal to delay key sustainability reporting requirements, in a move aimed at reducing regulatory burdens on businesses and boosting competitiveness.
European Union member states have backed a proposal to delay key sustainability reporting requirements, in a move aimed at reducing regulatory burdens on businesses and boosting competitiveness.
The decision, endorsed by the EU Council, advances the “Stop-the-clock” mechanism, which extends deadlines for corporate sustainability reporting, according to ESG News.
“Simplification is one of the priorities of the Polish presidency. Today’s agreement is a first step on our decisive path to cut red tape and make the EU more competitive,” said Poland’s Minister for the European Union Adam Szłapka.
Under the proposal, the Corporate Sustainability Reporting Directive (CSRD) will be postponed by two years for large companies that have not yet started reporting, as well as for listed small and medium-sized enterprises (SMEs).
Additionally, the Corporate Sustainability Due Diligence Directive (CSDDD), which imposes obligations on the largest companies, will see its transposition deadline and initial implementation phase delayed by one year.
The changes form part of the EU’s broader “Omnibus I” legislative package, aimed at simplifying sustainability regulations and streamlining reporting obligations.
EU governments have largely supported the urgency highlighted by the Polish presidency, citing the need for clear and manageable compliance timelines for businesses. A swift agreement with the European Parliament could open the door to further revisions of CSRD and CSDDD regulations.
The next steps involve negotiations between the Polish presidency and the European Parliament to finalize a provisional deal. Lawmakers are set to vote on an urgent procedure request regarding the proposal on April 1.
