The EU Hits Pause on Sustainability Reporting: A Tactical Retreat or a Strategic Reset?

* By Nicole K. Phinopoulou

On April 14, 2025, the EU Council formally announced that it has adopted a decision that will reverberate across boardrooms and sustainability departments throughout Europe and beyond. In what has been dubbed the ‘Stop-the-clock’ mechanism, the EU Council gave the final green light to a directive that delays key corporate sustainability obligations—namely the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive