EU: MEPs vote to ‘stop the clock’ on sustainability reporting

Parliament votes to postpone CSRD and CSDDD implementation until 2028, reducing reporting requirements and exempting 80% of companies through higher employee thresholds

Key points: The European Parliament voted to delay implementation of CSRD and CSDDD until 2028 and increased the employee threshold for CSRD reporting to 1,000 employees. Reporting requirements substantially reduced and CSDDD due diligence requirements eased

Why this matters: This decision provides significant relief for businesses, particularly SMEs, by reducing regulatory burden and compliance costs. The delay and simplification allow companies more time to prepare and adapt their reporting processes.

What might happen next: There may be further refinements to the directives may occur before implementation, but there will also be potential pushback from environmental and social responsibility advocates. Companies may need to balance reduced reporting requirements with stakeholder expectations for sustainability information

What you should be doing: Review your sustainability reporting processes and adjust timelines.  Continue to develop sustainability strategies, even if not immediately required to report. Monitor for any additional changes or guidance from EU authorities 

European parliament press release.