The EU 'Stop-the-clock' Directive: Consequences For The CSRD And CS3D

On 26 February 2025, the European Commission published a proposal for a directive introducing the "Simplification Omnibus Package." This proposal was subsequently adopted, and the resulting Directive (EU) 2025/794 — commonly known as the "Stop-the-Clock" Directive — entered into force in April 2025. It brings important changes to both the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D). With this initiative, the Commission aims to ease the administrative burden on companies by simplifying and clarifying existing sustainability rules. This article outlines the key amendments introduced by the proposal.

A. Key amendments regarding the Corporate Sustainability Reporting Directive (CSRD)