Latest Update on the Omnibus Proposal

As of April 2, 2025, significant developments have occurred regarding the European Union's "stop-the-clock" proposal, which aims to delay the implementation of certain corporate sustainability reporting and due diligence requirements.
European Council's Position:

On March 26, 2025, the Council of the EU's Committee of Permanent Representatives (Coreper) approved the Council's negotiating mandate on the "stop-the-clock" directive. This directive proposes to postpone:
 
·      By two years, the application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as for listed small and medium-sized enterprises (SMEs).

·      By one year, the transposition deadline and the initial phase of application for the largest companies under the Corporate Sustainability Due Diligence Directive (CSDDD).
 
The Council emphasized the urgency of providing EU companies with legal certainty regarding their reporting and due diligence obligations.
 
European Parliament's Actions:

On April 1, 2025, the European Parliament voted to fast-track the "stop-the-clock" proposal, approving the use of an urgent procedure with 427 votes in favor, 221 against, and 14 abstentions. This decision accelerates the legislative process, allowing for a final vote on the proposal scheduled for April 3, 2025.

Next Steps:

If the European Parliament approves the proposal on April 3, 2025, the directive will proceed to formal adoption. The Council has expressed its intention to finalize the directive by June 2025.

These developments reflect the EU's commitment to simplifying sustainability reporting requirements and providing companies with additional time to comply with forthcoming obligations.