European Parliament postpones sustainability obligations for companies

In brief

On 3 April 2025, the European Parliament adopted a directive postponing the application dates of certain obligations regarding the publication of sustainability information and due diligence for companies. This decision aims to give companies more time to prepare for the new rules, while maintaining the EU's environmental and social objectives.

Background

In recent years, the European Union adopted two important directives: the Corporate Sustainability Reporting Directive (CSRD, Directive 2022/2464) and the Corporate Sustainability Due Diligence Directive (CSDDD, Directive 2024/1760). The CSRD requires large companies to publish information on their environmental and social impact, while the CSDDD requires them to identify and prevent human rights and environmental abuses in their supply chain. Initially, Member States were to transpose these directives into national law from 2025-2026. Faced with practical difficulties encountered by companies, the European Commission proposed a postponement of the deadlines.

What was decided

The European Parliament approved the Commission's proposal to postpone the application dates by two years for certain categories of companies. Specifically:

• For the CSRD: companies already subject to the directive (large listed and unlisted companies) will have to apply the rules from 2027 instead of 2025; listed small and medium-sized enterprises (SMEs) will have until 2028 instead of 2026.
• For the CSDDD: due diligence obligations for the largest companies (over 5,000 employees) will apply from 2028 instead of 2027; other large companies (over 1,000 employees) from 2029 instead of 2028.

The adopted text is the result of an agreement between the Parliament and the Council (the Member States), meaning it is the final version of Directive (EU) 2025/794. Member States will have to transpose these new dates into their national law by a certain deadline.

Vote result

The proposal was adopted without a roll-call vote, indicating broad consensus. No details on the number of votes for, against or abstentions are available.

What this means for citizens

For European citizens, this postponement means that information on companies' sustainability (such as their carbon footprint or social practices) will be available a little later than planned. However, the objectives of the directives remain unchanged: ultimately, companies will have to be more transparent and responsible. Consumers will thus be able to make more informed choices, and workers and local communities will be better protected against abuses. This additional time allows companies to prepare without haste, which should improve the quality of reports and reduce administrative burdens.