The “stop the clock” directive has been published in the Official Journal of the EU and will enter into force tomorrow, 17 April 2025.  Member States are required to transpose the directive into national law by 31 December 2025.

The directive is the first of two directives forming part of the Omnibus package proposed by the European Commission on 26 February 2025 aimed at simplifying EU sustainability reporting and due diligence requirements under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

The “stop the clock” directive:

• Postpones CSRD reporting requirements by two years:
  • “wave 2” companies: will now report in 2028 (in respect of financial years starting on or after 1 January 2027).
  • “wave 3” companies: will now report in 2029 (in respect of financial years starting on or after 1 January 2028).

• Postpones CSDDD implementation by one year:
  • Transposition deadline: postponed until July 2027.
  • Application for first phase companies: postponed until July 2028.

The reporting timeframe for “wave 1” companies under the CSRD remains unchanged. Additionally, there is no postponement of the date of application for non-EU companies, which are due to begin reporting in 2029.

The Department of Enterprise, Trade and Employment confirmed last month that the Minister is focused on implementing the “stop the clock” directive alongside other amendments to the existing Irish legislation implementing the CSRD.