Adoption of the Stop-the-Clock Directive Amending Corporate Sustainability Due Diligence Directive

On 14 April 2025, the Council of the European Union approved the position of the European Parliament at first reading, illustrated in this blog, on the proposal for a directive amending Directives (EU) 2022/2464 and (EU) 2024/1760 (the Corporate Sustainability Due Diligence Directive – CSDDD) as regards the dates from which Member States are to apply certain corporate sustainability reporting and due diligence requirements. The directive has thereby been formally adopted (the final text can be read here) and will be published shortly on the Official Journal of the European Union.

As result of the amendments by the stop-the-clock directive, Member States will have until 26 July 2027 to transpose the CSDDD into their national legislation.

Member States shall apply those measures: from 26 July 2028 as regards EU-based companies (over 3,000 employees and €900 million turnover), with Article 16 on communicating obligations applying from financial years starting on or after 1 January 2029; from 26 July 2028 as regards non-EU based companies (€900 million turnover), with Article 16 on communicating obligations applying from financial years starting on or after 1 January 2029; from 26 July 2029 for all other covered companies, with Article 16 on communicating obligations applying from financial years starting on or after 1 January 2030.

This prompt agreement will allow the co-legislators sufficient time to reach consensus on the substantive amendments to the CSDDD, also put forward by the Commission under the ‘Omnibus I’ sustainability package.