On April 3, 2025, the European Parliament voted to delay by one year the implementation of the Corporate Sustainability Due Diligence Directive (CSDDD). The move follows the Council of the European Union’s earlier agreement on March 28, 2025, to extend the deadline.
A total of 531 Members of the European Parliament (MEPs) voted in favor of the postponement, 69 opposed, and 17 abstained.
Part of EU Efforts to Simplify Corporate Rules
The proposal forms part of the European Commission’s recent initiative to simplify and streamline several regulations, including the Corporate Sustainability Due Diligence Directive and other corporate reporting laws.
Under the revised timeline, EU member states will now have until July 26, 2027, to transpose the directive into national law.
New Compliance Schedule for Businesses
According to the amended plan:
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Companies with over 3,000 employees and annual revenues of at least €900 million, as well as non-EU firmswith the same turnover threshold within the EU, must comply with the directive from July 26, 2028 — one year later than initially required.
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Other companies covered by the directive will have to comply by 2029.
Far-Right Proposal Rejected
The European Parliament rejected proposals from right-wing groups to postpone the directive’s application until 2040, reaffirming the EU’s commitment to maintaining progress on sustainability and responsible corporate governance.