Environmental compliance

What are the latest developments? We’ve picked out some highlights for May 2025:

Sustainability reporting: simplification clears final hurdle
Microplastics: major step to tackle plastic pellet pollution

Sustainability reporting: simplification clears final hurdle

The Council of the European Union has formally adopted the ‘Stop-the-Clock’ directive, an important measure within the European Commission’s broader ‘Omnibus I’ package aimed at simplifying EU sustainability legislation and enhancing competitiveness.

The directive postpones by two years the application of obligations under the Corporate Sustainability Reporting Directive (CSRD) for large companies that have not yet begun reporting, as well as for listed small and medium-sized enterprises (SMEs).

In addition, the transposition deadline and initial phase of application of the Corporate Sustainability Due Diligence Directive (CSDDD) are deferred by one year.

This adjustment responds to calls from EU leaders for clearer and more manageable regulatory frameworks, especially for SMEs.

The fast-tracked adoption provides businesses with legal certainty regarding their upcoming reporting and due diligence obligations.

Council approval was the last step necessary before publication in the EU’s Official Journal, which took place on 14 April. The directive is now in force and EU countries must transpose it into national law by 31 December 2025.

The adopted delay in obligations now gives co-legislators additional time to negotiate the substantive reforms to the CSRD and CSDDD frameworks proposed by the European Commission as part of the ‘Omnibus I’ package.

The Council of the EU has already started discussions on the topic, and the European Parliament will do so in the coming weeks.

Microplastics: major step to tackle plastic pellet pollution

The Council and European Parliament have reached a provisional agreement on the first regulation specifically aimed at preventing the release of plastic pellets into the environment.

Plastic pellets, a primary raw material for plastic production, are a significant source of microplastic pollution when lost during transport, storage and handling.

The new rules establish mandatory handling requirements across the supply chain, introducing third-party certification obligations for large operators, while allowing simplified reporting for smaller businesses.

The regulation is part of the EU’s broader efforts under the Circular Economy Action Plan and the Zero Pollution Action Plan to reduce microplastic pollution by 30% by 2030.

By strengthening preventive measures, the legislation seeks to curb pellet losses by up to 74%, helping to protect marine ecosystems, soil quality and human health.

The law must now go through the formal approval processes of the European Parliament and the Council, expected in the coming months, before it can enter into force.