Our thinking

EU Parliament backs delay to sustainability rules

4 April, 2025

On April 3, the European Parliament voted to pause the next phase of the EU’s sustainability rules. In a strong show of support, 531 MEPs backed the so-called stop-the-clock proposal, with just 69 voting against and 17 abstaining. 

The vote was dramatic. Last-minute amendments were submitted, including one calling for the sustainability directives to be scrapped altogether and another proposing a 15-year delay until 2040. Both were ruled out or rejected. On April 1, Parliament had agreed to fast-track the decision under an urgent procedure. Now that the vote has passed, it will take effect shortly.  

The decision gives companies in the second and third waves of the Corporate Sustainability Reporting Directive (CSRD) an extra two years before they need to start reporting. It also postpones implementation of the Corporate Sustainability Due Diligence Directive (CSDDD) by one year for the largest companies in scope. Both delays are part of the Commission’s broader Omnibus I simplification package. 

The delay only affects companies not yet in scope. Those already required to report under CSRD—such as large public-interest entities with over 500 employees—must continue preparing 2024 reports for publication in 2025. While future changes to reporting standards may come through the wider Omnibus process, these will not apply retroactively. 

For many companies, this pause brings welcome breathing room. It also opens the door for continued debate on bigger potential changes, including narrowing the scope of the directives, simplifying reporting requirements, and reducing the burden on SMEs. These revisions will be negotiated over the coming months through the standard legislative process—not fast-tracked—so further changes are unlikely to take effect before the end of the year. 

Our advice to companies: use this time wisely. Strengthen internal sustainability setup, keep momentum going, and stay focused on long-term sustainability goals. The clock may be paused, but the direction of travel remains the same. 

By Mariana Garcia