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Sustainability and due diligence: EP approves postponement of new rules

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By illuminem briefings

· 2 min read


illuminem summarises for you the essential news of the day. Read the full piece on European Parliament Press Release or enjoy below:

🗞️ Driving the news: The European Parliament has approved a one-year delay to the implementation of EU due diligence rules and a two-year postponement for sustainability reporting requirements
The vote—531 in favour, 69 against—supports the Commission’s “Stop the clock” initiative aimed at simplifying regulation and boosting EU competitiveness
The directive affects large companies with significant environmental and human rights responsibilities across their supply chains

🔭 The context: Due diligence rules require companies to identify, prevent, and mitigate harm caused to people and the environment through their operations
The new timeline gives EU member states until 26 July 2027 to transpose the directive into national law
Sustainability reporting deadlines for large and listed SMEs have also been pushed to 2028 and 2029, respectively

🌍 Why it matters for the planet: Postponing sustainability rules delays corporate transparency on environmental and social impacts during a critical period for climate action
While simplification may aid businesses, it also risks slowing the momentum behind corporate accountability in supply chains and ESG progress
The delay may affect global efforts to align finance and trade with sustainable development goals 

⏭️ What's next: The European Council, which already supports the revised timeline, must now formally adopt the proposal for it to become law
Parliamentary review of the scope and content of the rules will continue in the Legal Affairs Committee
Implementation discussions and corporate preparations are expected to resume with renewed urgency in 2026

💬 One quote: “These are pragmatic changes aimed at reducing burdens without weakening sustainability goals,” — summary of the EU Commission’s rationale behind the postponement

📈 One stat: 531 MEPs voted in favour of the delay to the due diligence and sustainability reporting timelines

See here detailed sustainability performance of companies like TotalEnergies, Nestlé, and Siemens

Click for more news covering the latest on corporate sustainability and public governance

 

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