CSRD Stop-the-Clock Directive Published and Enters Into Force

The measure was the first part of the Commission's February 2025 Omnibus package to be adopted. The Commission had invited the co-legislators to treat it as a priority. The European Parliament adopted its position on 3 April 2025 and the Council gave its approval on 14 April 2025.

New CSRD dates

Article 1 amends Article 5(2) of the CSRD so that:

• the second wave, which covers large undertakings not already reporting, will apply the rules for financial years starting on or after 1 January 2027, two years later than originally planned;
• the third wave, which covers listed SMEs and certain other entities, will apply them for financial years starting on or after 1 January 2028.

Companies already reporting in the first wave are not affected by the postponement.

New CSDDD dates

Article 2 moves the CSDDD transposition deadline to 26 July 2027. The first group of companies, EU companies with more than 3,000 employees and over EUR 900 million net worldwide turnover and non-EU companies with over EUR 900 million EU turnover, must comply from 26 July 2028. Remaining companies in scope follow from 26 July 2029.

What it means for preparers and assurance providers

Member States must transpose the directive by 31 December 2025. For finance teams, auditors and other sustainability assurance providers, the directive removes the immediate deadline for second wave reports covering financial year 2025, giving time before the reporting and assurance cycle begins. It does not change the content of the European Sustainability Reporting Standards or the scope of the CSRD. Those questions are addressed in the separate Omnibus proposals, which would remove around 80% of companies from scope and remain under negotiation. Companies that may fall outside the future scope must therefore plan without certainty about whether they will ultimately be required to report.

Sources

• EUR-Lex: Directive (EU) 2025/794 (stop-the-clock directive)
• European Commission: Commission simplifies rules on sustainability and EU investments (26 February 2025)