Companies will have more time to adapt to the European Union's new sustainability rules

11.04.2025

The European Parliament has approved the postponement of the legal timetable for the European directives on sustainability reporting (CSRD) and corporate due diligence (CSDDD). This postponement, of one or two years, is part of the European Union's (EU) simplification efforts.

The sustainability reporting directive (CSRD) aims to increase transparency and facilitate the assessment of companies' sustainable performance. 

Due diligence (CSDDD) refers to the responsibility of companies to address the harmful impacts of their activities on human rights and the environment.

What are the changes to the timetable for the sustainability reporting directive (CSRD)?

The European Union has postponed the start of mandatory reporting by two years for the following types of companies that were not yet reporting according to European standards:

  • Large companies (with more than 250 employees) - will start reporting from 2028, based on data from the previous financial year
  • Listed SMEs (small and medium-sized companies on the stock exchange) - will start reporting from 2029.

These two groups of companies now have two more years to prepare for mandatory reporting.

What are the changes to the due diligence directive (CSDDD)

The EU has decided to postpone the transposition and application of the first phase of this directive by one year.

The new dates are:

  • Member States now have until July 26, 2027 to implement this directive in national law
  • The first group of companies (with more than 5,000 employees and a turnover of more than 1.5 billion euros) have to apply the rules from 2028 (instead of 2027).

The second group of companies (with more than 3,000 employees and a turnover of more than 900 million euros) continue to have to apply the rules in 2028.

See more information on the Environment, Social and Governance (ESG) factors on the IAPMEI website

Source: IAPMEI