Sustainability and due diligence rules: MEPs set to fast-track postponement
Ϸվ will vote on measures to delay the enforcement of new sustainability reporting and due diligence measures for some companies.
On Tuesday, plenary will decide whether to apply its “urgent procedure” to draft legislation delaying the application of new requirements for social and environmental reporting and due diligence. If approved, MEPs will vote on the substance of the proposal on Thursday.
The draft law would postpone the application of new rules, which are intended to mitigate the negative impact of businesses on people and the planet, for the first wave of companies due to fall under its umbrella by one year. Due diligence requirements would thus apply from 2028 for EU companies with over 3,000 employees and a net turnover of more than €900 million, and for non-EU companies that exceed this turnover threshold in the EU. Social and environmental reporting would be delayed until 2027 for large companies with more than 250 employees. As of 2028, the rules would apply to listed small and medium-sized enterprises.
Background
The European Commission presented this “” simplification package, comprising four separate files, on 26 February 2025. Besides this directive on the delayed application of reporting and due diligence rules, it also includes a directive of the due diligence requirements and sustainability reporting.