On the 3rd of April 2025, the European Parliament approved the postponement of the reporting obligations under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). This decision forms part of broader reforms announced earlier this year by the European Commission through the so-called omnibus packages. What do these directives entail? And what has changed for businesses?
The CSRD and the CSDDD
The CSRD is an EU directive that requires companies to prepare sustainability reports in a structured manner. These reports must address topics such as climate change, biodiversity, the circular economy and working conditions. The CSRD is closely linked to the European Green Deal and effectively serves as an instrument to support the Commission’s overarching policy plan to make Europe the first climate-neutral continent by 2050.
The CSDDD complements the CSRD but focuses specifically on companies’ duty of care (due diligence). This directive focusses on identifying sustainability risks throughout the entire value chain. As a result, companies are required to take active responsibility for the impact of, for example, suppliers or subsidiaries.
With the introduction of these European sustainability directives, the EU confirms a new approach to sustainability reporting by large companies. This approach significantly expands the group of businesses that are required to comply with EU sustainability reporting requirements.
Omnibus packages
Last February, the European Commission introduced the so-called omnibus packages. These packages contain simplification measures aimed at reducing administrative burdens and fostering an easier business environment. As part of these omnibus packages, the European Parliament approved the postponement of the implementation dates on the 3rd of April 2025.
Postponement measures
The European Parliament has amended the deadlines by which Member States must have implemented the directives. With regard to the CSRD, its application has been postponed by two years for certain companies. Large undertakings within the meaning of the CSRD will now be required to report for the 2027 financial year. Listed small and medium-sized enterprises will also start reporting one year later, for their 2028 financial year. The omnibus proposal makes it clear that the scope of companies required to report has been significantly reduced. No less than 80% of undertakings no longer fall within the scope of the directive. Whereas a company was previously classified as “large” at a threshold of 250 employees, the CSRD now applies a stricter definition. Only companies with more than 1,000 employees and with a turnover exceeding EUR 50 million, or a balance sheet total exceeding EUR 25 million, remain subject to the obligation.
As regards the CSDDD, Member States have until the 26th of July 2027 to transpose the directive into national law. Large companies with more than 5,000 employees and a net turnover exceeding EUR 1.5 billion must comply with the directive’s requirements from 2028 onwards. The same applies to non-EU companies that meet the same turnover threshold within the EU. From 2028, large EU companies with more than 3,000 employees and a net turnover exceeding EUR 900 million must also comply with the statutory obligations. This requirement equally applies to non-EU companies.
Conclusion: postponement is not cancellation
The postponement of the CSRD and CSDDD obligations gives companies additional time to prepare for what lies ahead. However, the delay does not signal a change in direction in the EU’s sustainability ambitions. It is clear that transparency and sustainability will become structurally embedded in European business practice.
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