EU parliament fast-tracks ‘stop the clock’ decision on CSRD and CSDD delays
On 1 April, the Parliament of the European Union (EU) voted to fast-track the ‘stop the clock’ proposal, a key move to postpone the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) for certain companies. The fast-track vote, passed with 427 votes in favour, 221 against, and 14 abstentions, clears the way for a final decision later this week.
The proposal, part of the European Commission’s “Omnibus I” package, would delay social and environmental reporting obligations under CSRD by two years for the second and third waves of companies. It also includes a one-year deferral for the transposition and application of due diligence requirements under the CSDDD for the largest entities. The Council of the European Union has already signalled support for the delay, suggesting that formal adoption could follow swiftly after the Parliament’s final vote.
This fast-tracking follows growing concerns from preparers and some member states about readiness and resource constraints, especially for smaller entities facing CSRD’s second and third wave deadlines. Meanwhile, key questions remain around how the European Securities and Markets Authority (ESMA) will adjust its timeline for the introduction of mandatory digital reporting using Inline XBRL under the European Single Electronic Format (ESEF) and the sustainability reporting regime.
The vote underlines the ongoing balancing act between quality, readiness, and the growing scope of digital sustainability reporting. While the delay offers breathing space, it also highlights the urgent need for investment in high-quality, machine-readable reporting infrastructure to ensure meaningful, comparable data when these requirements eventually take effect.
Read the full EU Parliament press release here.
