European Parliament backs proposal to postpone sustainability obligations

As we announced earlier, on 26 February 2026, the European Commission proposed an Omnibus package aiming to help EU companies meet their sustainability obligations by simplifying certain sustainability reporting legislations.

On 5 May 2025 the European Parliament adopted the European Commission's "Stop the Clock" proposal, and as an outcome, the application of the reporting requirements set by CSRD will be postponed by two years (until 2028) for companies currently subject to the CSRD and therefore required to report from 2026 or 2027. 

The most important benefits of the "Stop the Clock" proposal are as follows:

-              Reporting under the CSRD would only apply to large companies with more than 1,000 employees.

-              Harmonisation of corporate due diligence requirements across the EU to ensure a level playing field.

-              Reducing burdens by limiting the amount of information that large companies can be asked to provide as part of their value chain mapping.

-              Member States should transpose the CSDDD into national law by 26 July 2027 instead of 26 July 2026.

-              A simplification of the mechanism to offset the carbon intensity of imported goods is also part of the package of proposals.

Now it should be monitored when the European Council will approve the proposal.