Almost paused

The pause on the current corporate sustainability reporting regime has taken a further step closer.

Yesterday, 14 April 2025, saw the Council of the European Union give the green light for the postponement of the further roll out of the Corporate Sustainability Reporting Directive (CSRD) for two years and a one-year deferral of the Corporate Sustainability Due Diligence Directive (CSDDD) with the final approval of the 'Stop the Clock' Directive.

Once enacted, the Stop the Clock Directive will pause CSRD obligations for wave 2 and wave 3 companies and it will also defer the transposition of CSDDD.

See our previous article on these developments for more information.

The final steps are the publication of the Stop the Clock Directive in the Official Journal *, which we are eagerly anticipating, and the Irish Minister for Enterprise implementing the changes into Irish law.

Ireland has until 31 December 2025 to implement these changes but, in a recent press release, the Minister for Enterprise, Tourism and Employment, Peter Burke, indicated that he is focused “on quickly implementing the EU’s ‘Stop the Clock’ proposal”.

Posting on LinkedIn, European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, said:

“This development is good news for businesses, granting them predictability, clarity and a firm timeline for the implementation of the rules. It underscores the commitment of European institutions to cooperate and deliver fast in the interest of simplification.

Today's agreement on postponing these rules marks a significant first step in our collective journey towards meaningful reforms that will simplify regulations, reduce admin burden, and make it easier for businesses to operate.”

Sentiments that will be welcomed by the business community.

For more information, please contact author Michelle McLoughlin, Senior Knowledge Consultant, or your usual contact in the Corporate or ESG groups. 

Date published: 15 April 2025

* Since publication, the Directive was published in the Official Journal on 16 April 2025 and entered into force on the next day 17 April 2025. We are awaiting the necessary Irish amending legislation.