EU ‘stop the clock’ vote set for April: what it means for EU companies
The European Parliament is scheduled to vote in their 1 April plenary session on whether to fast-track the ‘stop the clock’ proposal, which would delay Corporate Sustainability Reporting Directive (CSRD) requirements for Wave 2 and 3 companies by two years.
If approved, these companies would not need to report until 2027 and 2028, respectively. The European Council is also expected to vote soon, potentially finalising the decision before the summer.
These timing issues are just one part of the proposed changes, which would impact the number of companies impacted by the regulations and the scope of the EFRAG Sustainability Reporting Standards.
If fast-tracked, the ‘stop the clock’ proposal could be adopted within weeks, pausing sustainability reporting obligations until 2028 for many companies – although not the large listed entities and others in “Wave 1”. Among other things, after there is more clarity around these “Omnibus Amendments” ESMA will need to determine when companies need to file digital reports.
For more details, read a full run-down of the implications of the ‘stop the clock’ vote on companies of various sizes here, here and here.
