European Council approves postponement of CSRD and CSDDD

On 14 April, the European Council approved the European Commission’s proposal to postpone the dates of application of certain sustainability reporting and due diligence requirements. The proposal (often referred to the “Stop the clock” proposal) postpones; 

• by two years the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed SMEs, and 

• by one year the transposition deadline and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD). 

Following the approval by the European Council, the legislative act was published in the EU’s Official Journal on 16 April. Member States, including Ireland, will be required to transpose the Directive into their national legislation by 31 December 2025.