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LEGAL: 🌱 EU Sustainability Reporting Delay

On April 3, 2025, the European Parliament voted to postpone certain sustainability reporting requirements, particularly affecting smaller businesses. This delay aligns with the European Commission's "Simplification Omnibus" proposal, aiming to ease regulatory burdens. The implementation of the EU supply chain law is also postponed by one year to 2028. ​

One of the key components of this move is the delayed implementation of the EU Corporate Sustainability Reporting Directive (CSRD) requirements for smaller companies. These obligations, which involve disclosing environmental and social impact metrics, were initially scheduled for earlier implementation but will now be phased in more gradually. For SMEs, this offers much-needed breathing room to build the internal systems, gather necessary data, and develop reporting frameworks without being overwhelmed by compliance costs or complexity.

Ultimately, this move highlights a key shift in the EU’s regulatory strategy—focusing on pragmatism, phased implementation, and business readiness. It also underscores the importance for companies, especially SMEs, to begin preparing early for upcoming regulations, even if formal deadlines are extended.

(Source: Reuters.com)