CSRD and CS3D ‘stop-the-clock’ proposal approved by European Parliament
On 3 April 2025, the European Parliament voted in favour of the “stop-the-clock” proposal, without any amendments, to delay the application of the Corporate Sustainability Reporting Directive (“CSRD”) for wave 2 and 3 companies for two years and the application of the Corporate Sustainability Due Diligence Directive (“CS3D”) for one year.
The stop-the-clock proposal now requires formal approval by the European Council which already endorsed the proposal on 26 March 2025.[1] Once formally approved, the amending Directive will be published in the Official Journal of the European Union and enter into effect on the day after publication, which will then need to be transposed into national law in each Member State by 31 December 2025.
The substantive proposal, as detailed in our earlier article, will require further negotiation, although the Council has urged that this should be treated as a matter of priority and with a high level of ambition, with a view to finalising them as soon as possible in 2025 to provide further certainty for business and the investment community.[2]
In-scope businesses should keep abreast of developments to be in the best position to adapt to the changing requirements. For further information please contact the authors or your usual CMS contact.
[1] Simplification: Council agrees position on the ‘Stop-the-clock’ mechanism to enhance EU competitiveness and provide legal certainty to businesses - Consilium
