The European Commission has pushed back corporate sustainability laws giving businesses more time to prepare for complex reporting requirements.
The Corporate Sustainability Reporting Directive deadline has been pushed back to 2028, while the Corporate Sustainability Due Diligence Directive will now take effect from July 2028 a year later than planned.
They apply to all businesses in the Eurozone and UK firms operating in the EU.
The delay follows widespread complaints from businesses struggling to rearrange supply chains and meet compliance requirements.
The European Commission has also scaled back the scope of the Corporate Sustainability Reporting Directive meaning only companies with more than 1000 employees and €50 million in turnover will need to report on carbon emissions.
Kiren Pandya Principal at consultants Inverto, welcomed the move but warned companies not to relax: “These delays offer a welcome reprieve for businesses who are struggling to re-arrange their supply chains in accordance with these new mandates. Unfortunately businesses can’t be complacent—this legislation is being delayed not cancelled.”
Under the revised plans companies will assess their supply chains for Corporate Sustainability Due Diligence Directive compliance every five years instead of annually.
This means rules aimed at tackling human rights and environmental risks in global supply chains won’t take full effect until the next decade.
Despite the delays the reporting burden remains significant. Businesses now have extra time to prepare but will still need major changes to ensure compliance.
