The European Commission has confirmed that it is to delay the deadline for companies to comply with new corporate sustainability laws. Compliance with EC’s corporate sustainability reporting directive (CSRD) has now been delayed to 2028, says management consultancy Inverto, part of Boston Consulting Group. 

Businesses, including U.K. businesses operating in the EU, had complained about the red tape burden connected with complying with the legislation, and their ability to meet with the timetable for complying with the new laws.

The commission has also postponed the deadline for companies to comply with the Corporate Sustainability Due Diligence Directive (CSDDD) to July 26, 2028.  

“These delays offer a welcome reprieve for businesses who are struggling to re-arrange their supply chains in accordance with these new mandates,” said Kiren Pandya, principal at Inverto, in a February 28 press release. “Unfortunately, businesses can’t be complacent — this legislation is being delayed not cancelled. Complying with these new rules is still going to be a significant challenge for businesses — even with the new deadline.”

Under the CRSD, companies were set to report on their carbon emissions in 2026 and 2027. The scope of the CRSD has also been stripped back — now, only companies with more than 1,000 employees and over €50 million ($52 million) in turnover will need to report on their carbon emissions.  

The proposed changes will also delay from 2027 to 2028 the impacts of CSDDD rules, designed to force companies to fix potential human rights and environmental issues in their supply chains. Companies will now only be required to assess their supply chains for compliance with CSDDD every five years. This is compared to once a year before the proposal was published.  

The CRSD and CSDD will nevertheless require businesses to report extensively on the impacts of their activities. This includes reporting on environmental factors, such as impacts of purchases on climate change and marine systems; human rights factors, such as employment rights; and governance factors, such as business ethics and corporate culture.