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EU Omnibus Update – "Stop the Clock" on CSRD Reporting
The EU Parliament has officially passed the Omnibus Proposal with major timeline changes. Here's what it means for CSRD scope, sustainability transparency, and reporting deadlines.
- Authors
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- Name
- Lenart Severin
- https://x.com/responseAble_y
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Table of Contents
Omnibus Update – April 2025
On April 22, 2025, the EU Parliament voted to adopt Directive (EU) 2025/794, finalizing the so-called Omnibus Proposal.
One of the headline changes? Stop the clock.
The CSRD’s tight reporting deadlines have been softened, giving companies — and policymakers — a major breather.
What Changed:
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“Stop the Clock” Mechanism:
The first application of sector-specific CSRD standards (the ESRS) has been delayed by two years.
No sector standards before 2026 — meaning companies have more time before they face more detailed, customized ESG reporting demands. -
Threshold Adjustment Still in Play:
While the employee threshold increase (to 1,000+) was proposed, it was not yet fully confirmed in this directive. That discussion is still ongoing separately. -
Timeline Updates:
General CSRD reporting deadlines for large companies remain (first reports for FY 2024 in 2025).
But sector standards, SME standards, and non-EU company rules will all be delayed.
What It Means:
The EU is hitting pause on parts of the CSRD’s rollout, acknowledging the complexity — and pushback — from companies, investors, and some Member States.
For companies:
- More breathing room before sector-specific ESG reporting applies.
- Fewer immediate obligations in 2025 and 2026.
For investors:
- Full ESG comparability across sectors will take longer to materialize.
- The delay risks fragmenting early ESG analysis, especially between industries.
For sustainable finance as a whole:
- A slower but hopefully more stable implementation.
- Private and retail investors will need to stay cautious: early CSRD reports won’t be perfectly detailed yet, especially across different sectors.
Example:
An ESG report from an energy company and a retailer may look broadly similar in 2025, without the sector-specific depth that investors might expect under a fully operational CSRD.
Quick Table: New CSRD Timeline Highlights
| CSRD Area | Original Plan | New Timeline (Post-Omnibus) |
|---|---|---|
| Large Companies Reporting | FY 2024 | No change |
| Sector-specific Standards | 2024/2025 | Postponed to 2026 |
| SME Proportional Standards | 2024/2025 | Postponed to 2026 |
| Non-EU Company Reporting | 2028 | Likely minor delay |
Our Take:
The “stop the clock” move is pragmatic — but risky.
On one hand, companies genuinely needed more time. On the other, slowing down reporting evolution could entrench inconsistencies.
For private investors, it means ESG reporting will remain patchy by sector for at least another two years. Reading and comparing CSRD reports will require even more caution, especially when evaluating firms across different industries.
While the Omnibus buys time, it also demands patience from those depending on better ESG transparency for risk analysis, investment decisions, and sustainable finance goals.
What Happens Next
Directive (EU) 2025/794 has now been formally adopted and published, which means the “Stop the Clock” provisions are law.
However, this doesn’t mean the conversation is over:
- The delayed sector-specific standards (ESRS) are still under development.
- The employee threshold adjustment and broader simplification goals are ongoing in other legislative channels.
- National governments will need to transpose the directive into national law, and companies will continue preparing under a shifting timeline.
We’ll continue monitoring how these changes unfold — including how Member States implement the delays, how sector standards evolve, and whether the EU moves forward with narrowing the CSRD scope in future packages.
Sources:
This article was created with the assistance of AI and carefully reviewed, edited, and refined to ensure accuracy and clarity.