The Omnibus Packages – EU postpones reporting obligations and transposition deadlines in the CSRD and CSDDD

In February, the EU unveiled the proposal for the Omnibus Simplification Package (the “Omnibus”), which we also commented in our latest update about the Omnibus. The Omnibus Package includes a directive commonly referred to as the “Stop-the-Clock” directive, as it postpones certain reporting obligations and transposition deadlines, which has now been adopted.

As mentioned in our initial update about the Omnibus, the purpose of the regulation is to reduce reporting requirements and streamline the extensive number of requirements under EU’s ESG framework.

As a first step toward simplifying the ESG regulation, the EU has adopted the “Stop-the-Clock” directive, which specifically postpones:

• The reporting obligation under the Corporate Sustainability Reporting Directive (CSRD) by two years. As a result, large companies that have not yet started reporting will first be required to report in accordance with the CSRD in 2028, and listed SMEs will be required to report from 2029.
• The transposition deadline for the Corporate Sustainability Due Diligence Directive (CSDDD) to July 2027 and the initial application phase of CSDDD by a year. Consequently, the due diligence requirements under the CSDDD will apply to the first group of companies (companies with more than 3,000 employees and a net worldwide turnover of more than EUR 900 million) from July 2028, and to all other in-scope companies (companies with more than 1,000 employees and a net worldwide turnover of EUR 450 million) from July 2029.

The adopted directive can be found here. Member States must transpose the “Stop-the-Clock” directive into national law by 31 December 2025. A process which hopefully will be completed within the deadline taking into account that CSRD already is fully implemented into Danish law.

Next steps: The EU Parliament and the Council will continue working on more substantial changes to CSRD and CSDDD in accordance with the proposed Omnibus Simplification Package. These changes will be subject to separate legislatives and processes which the ESG team at Mazanti monitors closely.

Tags:  CSDDDCSRDSustainability