EU Member States have approved the postponement of corporate sustainability obligations, according to the European Council on Monday.
The European Parliament approved the text in early April through an expedited procedure, following its proposal by the Commission in late February as part of its simplification agenda.
Member States will now have until 26 July 2027 to incorporate the so-called due diligence law (CSDDD) into national legislation. This law, approved last year, aims to hold companies accountable for addressing exploitation and environmental damage in their supply chains. These obligations will come into effect from July 2028 for the largest companies.
The postponement aligns with the European Commission's goal to reduce administrative burdens on businesses and to enhance their competitiveness on the global stage.
As part of this effort, the implementation of the directive on sustainability reporting (CSRD) will also be delayed by two years, until 2028. Large companies will be required to report on the environmental and climate impact of their activities from that year, while publicly listed SMEs will have an additional year to provide this information.
The legal text will take effect once it is published in the Official Journal of the EU. Member States have until the end of December to transpose the directive into national legislation.
