EU members back sustainability-rules delays
EU member states have given the green light to measures that will postpone the application dates for new laws on due diligence and sustainability-reporting requirements.
The EU Council decision yesterday (14 April) follows approval from the European Parliament earlier this month.
Both institutions had agreed to prioritise discussion of the delays to give them time to consider substantive changes to two EU directives – the (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) – proposed by the European Commission.
‘Omnibus’ package
The moves were announced in February as part of a wider ‘omnibus’ package of changes to the EU’s sustainability rules that the commission said were aimed at simplifying EU rules and boosting competitiveness.
The so-called ‘stop the clock’ mechanism adopted will:
- Delay by two years the application of CSRD requirements to large companies that have not yet started reporting, as well as listed SMEs, and
- Delay by one year the transposition deadline and the first phase of the application (covering the largest companies) of the CSDDD.
The legislative act putting the postponements into effect will now be published in the EU’s Official Journal and will enter into force on the day after publication.