EU Commission pushes back sustainability reporting deadline
5-3-2025
EU COMMISSION PUSHES BACK SUSTAINABILITY REPORTING DEADLINE
European fashion and textile sector trade bodies have welcomed the European Commission’s plans to delay sustainability reporting, noting it allows companies sufficient time to understand and implement guidance effectively.
The EU Commission has pushed back reporting on sustainability under the Corporate Sustainability Reporting Directive to 2028 while the Corporate Sustainability Due Diligence Directive will now take effect from July 2028 — a year later than planned.
The move impacts all EU-based businesses, including UK firms operating in the EU.
The EU Commission said the decision was made due to its awareness that the CSRD and CSDDD are being implemented “in a new and difficult context” with the Russia-Ukraine war driving up energy prices and other trade tensions rising as the geopolitical landscape continues to shift.
“The different approach undertaken by some other major jurisdictions regarding the regulation of corporate sustainability reporting and due diligence raises questions about the effects of these laws on the competitive positioning of EU companies. The ability of the Union to preserve and protect its values depends, amongst other things on the capacity of its economy to adapt and compete in an unstable and sometimes hostile geopolitical context. This proposal therefore postpones the entry into application of the CSDDD and of certain provisions of the CSRD.”
The European Commission added: “This proposal is consistent with EU policy to enhance competitiveness, to simplify the regulatory framework and to reduce burden on business while still achieving the policy goals of the CSRD and CSDDD. This includes preserving the Green Deal as mid- to long-term competitiveness depends on companies sufficiently integrating sustainability considerations into their operations.”
The move follows the EU Commission’s introduction of an Omnibus proposal under which it aims to simplify EU rules, boost competitiveness, and unlock additional investment capacity.
Commenting on the Omnibus proposal, EURATEX said it welcomed “the simplification of sustainability reporting standards, which should reduce both the number of required data points and compliance costs. Another positive step is limiting the amount of information that large companies can request from their suppliers, helping to ease the administrative burden on SMEs.”
It added: “We also support measures to improve CS3D compliance, ensuring that companies have sufficient time to understand and implement the forthcoming Commission guidance effectively.
“While the proposal is a step in the right direction, concerns remain about legal predictability and the risk of penalising companies that have already made efforts and investments to comply with existing rules.”
Meanwhile, Matthijs Crietee, secretary general at the International Apparel Federation said the delay would allow apparel manufacturers to benefit from a CSDDD that “has teeth” to be executed and sufficiently enforced.
But he raised concerns over the Omnibus proposal.
“Manufacturers would feel the support of a legislative push on their buyers to improve purchasing practices. Of course, this only happens with correct implementation and enforcement of the law. In that sense, an Omnibus Law reducing some complexity and overlap between CSDDD and CSRD is potentially not a bad thing. However, the Omnibus process could also serve to water down the original laws.
“This is generally not good news for apparel manufacturers. It may lead to less clear or simply less requirements to share costs and efforts of improving environmental and labour conditions. Even worse, a watered down variety of the original CSDDD and CSRD regulations could increase the likelihood of a half-hearted switch to a risk-based approach, which really helps no one, especially not manufacturers.”
Crietee added: “It is clear that plenty of brands and retailers that have invested in a due diligence approach are not happy with a watering down of CSDDD, particularly. It reduces the value of the investments they have already made. These investments include work on the improvement of purchasing practices and sharing the costs and work of social and environmental supply chain improvements. Through the STTI (Sustainable Terms of Trade Initiative) that the IAF co-founded, the IAF is very involved with the improvement of purchasing practices. Clear and robust laws that are well enforced can support the positions of apparel manufacturers.”
By Just Style
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