European Parliament votes to postpone corporate sustainability and due diligence rules
The European Parliament has voted to postpone the application dates for new EU laws on due diligence and sustainability reporting requirements. On 3 April 2025, the Parliament voted with 531 votes in favour, 69 against, and 17 abstentions. This postponement is part of the EU's simplification efforts aimed at enhancing competitiveness. new due diligence rules, which require companies to mitigate their negative impact on people and the planet, will be postponed by one year for the largest companies. Member states will have until 26 July 2027 to transpose these rules into national legislation. The first wave of companies affected, including EU companies with over 5,000 employees and non-EU companies with significant turnover in the EU, will apply the rules from 2028. The same application date will apply to the second wave of companies with over 3,000 employees.The sustainability reporting directive will also be delayed by two years for the second and third waves of companies. Large companies with more than 250 employees will report on their social and environmental measures starting in 2028, while listed SMEs will begin reporting in 2029.The European Commission presented the 'Omnibus I' simplification package on 26 February 2025, which includes the directive endorsed by the Parliament today. The package also contains another directive altering the scope and content of sustainability reporting and due diligence requirements, which will be reviewed by the Parliament's Legal Affairs Committee.