EU Parliament approves 'stop-the-clock' proposal

 

As you might know, the European Commission has put forward a proposal called Omnibus #1, which aims to ease the burdens of sustainability reporting under the CSRD, CSDDD, and the EU Taxonomy.

 

While the proposal is still under discussion, the European Parliament has approved the so called 'stop the clock' proposal. This means that the European Commission is postponing the requirements for companies to prepare sustainability reports under the CSRD.

 

The key points are:

 

• Under the current rules, companies that would have had to report for the first time for the fiscal year 2025 or 2026 will now only need to report for fiscal years starting on January 1, 2027, or later. As a result, a large group of companies will be exempt from reporting until the fiscal year 2027.

 

• Companies not covered by future CSRD reporting requirements can still report using the voluntary VSME standard*. The omnibus proposal suggests that VSME will set the limit for ESG information that CSRD-covered companies can request from their SME partners.

 

• Only once the Omnibus proposal is fully discussed, companies will know whether they fall outside the scope or not.