‘Stop-the-clock’ directive published in the Official Journal of the European Union

On February 26, 2025, the European Commission adopted the Omnibus I package to simplify EU legislation, which included, among other measures, the proposal to postpone the date of application of reporting requirements under the Corporate Sustainability Reporting Directive (CSRD) and the transposition and application deadline of the Corporate Sustainability Due Diligence Directive (CSDDD).

The proposal is embodied in Directive (EU) 2025/794 of the European Parliament and of the Council of 14 April 2025 amending Directives (EU) 2022/2464 and (EU) 2024/1760 as regards the dates from which Member States are to apply certain corporate sustainability reporting and due diligence requirements, known as the ‘stop-the-clock’ directive.

As already detailed in our publication on the Omnibus proposal (read here), the new dates to be taken into consideration are as follows:

• With respect to the CSRD, the entry into application of reporting requirements is postponed for two years for companies that have not yet started reporting (until 2028, with respect to financial years starting on or after January 1, 2027, for large companies that were to have begun reporting in 2026, and until 2029, with respect to financial years starting on or after January 1, 2028, for listed SMEs that were to have begun reporting in 2027).
• With respect to the CSDDD, the deadline for member states to transpose the directive is postponed by one year (until July 26, 2027) and the entry into application of sustainability due diligence requirements is delayed for twelve months (to July 26, 2028) for larger companies, meaning those with more than 3,000 employees on average and a net worldwide turnover of more than €900 million.

Member states must transpose this directive by December 31, 2025.