The European Union (EU) will postpone its requirement that non-EU companies adopt upcoming sustainability-reporting standards under the Corporate Sustainability Reporting Directive (CSRD). The delay, part of the Omnibus I reform package the European Parliament’s Legal Affairs Committee approved on October 9, 2025, would move the compliance date from June 2026 until at least October 2027. Lawmakers said the measure is intended to simplify the EU’s sustainability framework and ease reporting burdens for foreign firms.

Why does it matter?

The revision gives multinational corporations more time to prepare for Europe’s sustainability-reporting rules, which require detailed climate and social disclosures for large companies with significant EU operations. Businesses have warned that overlapping global disclosure regimes add cost and complexity. EU policymakers said the revised timeline will help maintain competitiveness and support alignment with international standards.

What’s the background?

The delay follows the European Parliament’s vote to approve the Commission’s “stop-the-clock” directive, which postponed implementation of the CSRD and Corporate Sustainability Due Diligence Directive (CSDDD) as part of the Omnibus I package. That vote marked a major step in the EU’s effort to scale back ESG reporting rules. See Ballotpedia’s Economy and Society: April 8, 2025 for earlier coverage of this vote.

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