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  • Omnibus proposals: Council of the EU agrees position on 'stop-the-clock' mechanism

    26 March 2025
    The Council of the EU has announced that it has agreed its position on the "stop-the-clock" mechanism to postpone the dates of application of certain corporate sustainability reporting and due diligence requirements, as well as the transposition deadline of the due diligence provisions. In particular, to postpone:
    • by two years the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed SMEs; and
    • by one year the transposition deadline and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD).
    This mechanism is intended to grant the co-legislators time to agree on substantive changes to the CSRD and CSDDD, also proposed by the Commission as part of the "Omnibus I" package on sustainability. The European Parliament has scheduled 1 April for a vote on this fast-tracked proposal.

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