Council of the EU publishes update on corporate sustainability reporting and due diligence directive amendments
The Council of the EU has published an update on the European Parliament's first reading of amendments to the Corporate Sustainability Reporting Directive (EU) 2022/2464 (CSRD) and the Corporate Sustainability Due Diligence Directive (EU) 2024/1760 (CSDDD). On 3 April 2025, the European Parliament adopted its position, rejecting all proposed amendments and accepting the Commission's proposal. The key changes include postponing sustainability reporting obligations by two years for companies initially required to report from 2025 and 2026. Additionally, the transposition deadline for the CSDDD is extended to July 2027, with further extensions to accommodate delays and ensure coherence with other legislative proposals. Large companies are required to report in 2027 and 2028, while small and medium-sized undertakings (SMEs) are required to report in 2029. The amendments emphasise legal clarity, reduced administrative burdens, and alignment with the Green Deal and Sustainable Finance Action Plan. Member States are expected to implement these amendments by 31 December 2025. The directive will take effect immediately after publication in the Official Journal.