On 3rd of April 2025, the European Parliament voted to approve a proposal to delay the implementation of new EU laws on sustainability reporting and due diligence, aimed at improving the social and environmental impact of businesses. With a strong majority of 531 votes in favour, 69 against, and 17 abstentions, Members of the European Parliament backed the Commission’s proposal, part of a broader initiative to simplify EU regulations and enhance competitiveness.
Under the new rules, large companies will be required to address their environmental and social impacts, but the application dates for these requirements have been extended. The due diligence rules, which mandate companies to mitigate negative impacts on people and the planet, will now be transposed into national law by July 2027, providing member states and businesses with extra time for compliance. The largest companies, with more than 5,000 employees and annual turnover above €1.5 billion, will only have to adhere to these rules starting in 2028. Similarly, the second wave of companies, which includes those with over 3,000 employees and €900 million in turnover, will face the new rules from 2028 as well.
The application of the sustainability reporting directive will also be delayed by two years for certain companies. Large businesses with more than 250 employees will be required to report on their social and environmental actions for the first time in 2028, covering the 2027 financial year. Listed small and medium-sized enterprises will need to comply a year later, in 2029.
This delay is part of the European Commission’s “Omnibus I” simplification package, which also includes changes to the content and scope of sustainability reporting and due diligence rules. The proposal now awaits formal approval by the Council of the EU to take effect.
For more information, please see here.