On 3 April 2025, the European Parliament voted to delay the start dates for two major EU regulations: the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). The decision gives companies more time to prepare for the new reporting and due diligence obligations, as part of a wider simplification agenda by the European Commission aimed at reducing administrative burden and boosting EU competitiveness.

The extension received broad support in Parliament, with:

• votes in favor: 531
• votes against: 69
• abstentions: 17

The proposal was processed under an urgent procedure, and with the Council having approved the same text on 26 March 2025, the new timelines are expected to enter into force shortly.

Key Updates

CSRD:

• Companies already reporting for financial year 2024 will continue as planned.
• Companies in the second and third CSRD wave will benefit from a two-year delay and will not be required to report in the next two years.
• First reporting for the next wave is in 2028 for FY 2027.

CSDDD:

• The due diligence obligations are postponed by one year.
• The first group of in-scope companies will begin reporting in June 2028, covering financial year 2028.

This legislative delay is one part of the broader “Omnibus I” package, presented by the European Commission on 26 February 2025. In addition to the extensions, the package proposes two major changes that will be discussed next:

• Adjusting the thresholds for which companies fall under the scope of CSRD.
• Simplifying the European Sustainability Reporting Standards (ESRS) to make reporting more practical and aligned with company capabilities.

These next steps will be addressed in the coming months, starting with discussions in the Legal Affairs Committee (JURI) of the European Parliament.

Strategic Implications for Your Organization

While regulatory pressure may have eased, now is the time to build your ESG reporting infrastructure, enhance data quality, and align reporting with your broader business goals. Even if thresholds are increased, we anticipate that many companies – especially those in the voluntary SME category (#VSME) – will continue to pursue sustainability reporting.

cleversoft’s Compliance Services for CSRD, Taxonomy, and CSDDD

cleversoft is closely monitoring the dynamic developments on the sustainability regulatory landscape and will keep you informed every step of the way. Once changes are adopted and delegated acts published, we will adjust services accordingly.

As your trusted RegTech provider, cleversoft offers reporting solution on all three regulations: CSRD, CSDDD and Taxonomy Article 8.

For questions about our CSRD solution, please contact us through our contact form. Our experts are ready to provide detailed guidance.

With cleversoft’s compliance commitment, you receive a service with integrated regulatory updates as soon as they are officially released by regulators.