The European Parliament has voted to postpone the implementation of new EU laws on corporate due diligence and sustainability reporting, granting companies and member states additional time to prepare for the requirements.
In a plenary session on Thursday, MEPs voted overwhelmingly in favour of the delay, with 531 votes in support, 69 against, and 17 abstentions. The move forms part of the European Commission’s broader “Omnibus I” simplification package, designed to enhance the EU’s competitiveness while maintaining commitments to responsible business conduct and environmental accountability.
The revised timeline gives EU member states until 26 July 2027 to transpose the due diligence directive into national law—an extension of one year. The same extension applies to the first cohort of companies required to comply with the rules. These include EU firms with over 5,000 employees and annual turnover exceeding €1.5 billion, as well as non-EU companies generating equivalent turnover within the EU. These entities will now begin applying the new due diligence obligations in 2028.
The second wave of companies—EU-based firms with more than 3,000 employees and turnover above €900 million, and non-EU companies meeting the same threshold—will also begin compliance in 2028.
The application of the Corporate Sustainability Reporting Directive (CSRD) has similarly been delayed. Large companies employing more than 250 people will now be required to publish their environmental and social impact reports in 2028, covering the 2027 financial year. Listed small and medium-sized enterprises will follow a year later, reporting for the first time in 2029.
The deferral aims to ease administrative pressures on businesses and national authorities, particularly as many adapt to complex new regulatory frameworks introduced under the EU Green Deal and Sustainable Finance agenda.
The “Omnibus I” package, unveiled by the Commission on 26 February 2025, also includes separate legislative proposals to amend the scope and content of due diligence and sustainability reporting. Parliamentary discussions on those proposals will now proceed in the Legal Affairs Committee.
In an effort to expedite the legislative process, the European Parliament agreed earlier in the week to treat the file under its urgent procedure. The draft law must now receive final approval from the Council of the EU, which endorsed the same text on 26 March 2025. Once formally adopted, the delay will enter into force.
