The official postponement of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) is now confirmed. These two pillars of EU sustainability and due diligence regulation will be delayed by up to 2 years, following the European Parliament’s final vote on April 3 supporting the European Commission’s proposal.
The decision, part of the February Omnibus sustainability package, was backed by 531 Members of the European Parliament, with just 69 opposed and 17 abstentions, signaling broad political support to “stop the clock” on key deadlines.
CSRD and CSDDD enforcement: what’s the new timeline?
Let’s break down the updated implementation schedule for both directives.
The CSRD has already entered into force and remains applicable without delays starting in 2025 for large companies with over 500 employees. However, new timelines have been introduced for the second and third waves of companies, who now gain a two-year extension.
Updated CSRD timeline:
- 2025: for large companies with over 500 employees (financial year starting January 1, 2024)
- 2028 (originally 2026): for other large companies and parent companies of large groups with over 250 employees (financial year starting January 1, 2027)
- 2029 (originally 2027): for SMEs, excluding micro-enterprises, small and non-complex institutions, and captive insurance and reinsurance firms (financial year starting January 1, 2028)
The CSDDD, approved only in 2024, has not yet been transposed into national law across all EU member states. The European Parliament has granted member countries an additional year, moving the transposition deadline to July 26, 2027.
The first due diligence reporting deadlines under the CSDDD have also been postponed by one year for all business categories.
Updated CSDDD disclosure timeline:
- 2028 (originally 2027): for EU companies with more than 5,000 employees and over €1.5 billion in net turnover, and non-EU companies generating equivalent revenue in the EU
- 2028: for the second wave of companies – EU firms with over 3,000 employees and €900 million in net turnover, and non-EU companies with the same EU revenue threshold
- 2029: for all other applicable companies