In the second half of 2025, the European Parliament and the Polish Sejm made a decision that significantly impacts the timeline of ESG (Environmental, Social, Governance) reporting obligations for many companies in Poland and Europe. These changes affect not only the reporting process itself but also corporate governance and long-term development strategy. A key element of this change is Directive 2025/794, commonly known as the “stop-the-clock” directive, which is part of the broader Omnibus I simplification package. For companies in the so-called second and third waves of CSRD implementation, this means one thing: they gain two more years to prepare for sustainability reporting obligations.
What is the Omnibus I package?
The Omnibus I package is an initiative of the European Commission aimed at simplifying reporting ESG and reducing administrative burdens for companies. It focuses primarily on the largest entities having a significant impact on climate and the environment, facilitating their access to financing supporting ecological transformation. It is estimated that thanks to the proposed changes, companies could save up to 6.3 billion euros annually, and the released investment potential could reach 50 billion euros.
The package includes changes in key areas of sustainability policy, including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), as well as the EU Taxonomy. Besides simplifying reporting obligations, it also provides changes regarding the CBAM mechanism and EU investment programs.
What’s next with the CSRD directive and the obligations it imposes?
ESG reporting took on new importance after the adoption of the CSRD (Corporate Sustainability Reporting Directive) by the European Parliament and the Council of the European Union in December 2022. These regulations aim to organize and unify the rules regarding non-financial disclosure by companies. An ESG report, compliant with the ESRS (European Sustainability Reporting Standards), today becomes an indispensable element of corporate governance and a tool for transparency across the entire European Union. The report is to be comparable, verifiable, and integrated with financial reporting from now on.
According to CSRD assumptions, the ESG reporting obligation will be implemented gradually and will cover three groups of companies:
- from 2025 – the largest public interest entities (PIEs),
- from 2026 – other large entities and capital groups,
- from 2027 – small and medium-sized companies listed on regulated markets.
Why was the “stop-the-clock” directive introduced?
Implementing the CSRD regulations has been associated with numerous difficulties from the start. The requirements set by the ESG reporting obligation proved to be a significant challenge for many companies—especially in terms of data collection, lack of appropriate tools, limited human resources, and high preparation costs. Early experiences already showed that preparing a reliable document such as the ESG report requires significantly more time and support than initially assumed.
In response to these signals, the European Commission has initiated a review of regulations, focusing on simplifying requirements and procedures. The outcome of this work is the Omnibus I legislative package, which contains two key elements:
- the “stop-the-clock” directive, i.e., the formal postponement of implementation deadlines for the second and third groups of companies,
- a proposal for changes to the CSRD itself – including limiting the scope covered by ESG reporting and simplifying the applicable standards.
What changes does the “stop-the-clock” directive introduce?
The “stop-the-clock” directive introduces a two-year deferral of the ESG reporting obligation for companies in the second and third waves of CSRD implementation. This means that large entities originally scheduled to start reporting for 2025 will be required to prepare their first report only for 2027, i.e., at the earliest in 2028. Meanwhile, small and medium regulated market issuers, whose reporting obligation was to cover data for 2026, will begin reporting only for 2028 – that is in 2029.
In practice, this change means a formal postponement of obligations by two years. The previous provision enabling voluntary deferral for the third group of companies has been simultaneously repealed because the new regulations replace earlier, less precise solutions. Thus, the directive clearly organizes the sustainable development reporting schedule, giving all entities covered by it extra time to adapt to the EU sustainability requirements.
Changes within the CSRD itself – fewer obligations for companies?
The “stop-the-clock” directive not only delays obligations. It is also closely linked to a broader proposal for substantive changes to the CSRD. The European Commission has proposed, among others:
- limiting the reporting obligation only to large enterprises employing over 1,000 employees and exceeding certain financial thresholds (turnover above 50 million euros or balance sheet total above 25 million euros),
- abolishing the obligation to develop sectorial ESG reporting standards,
- maintaining mandatory limited assurance of ESG reports – lower than the originally planned reasonable assurance,
- establishing a voluntary, simplified ESG standard for SMEs (VSME), which would operate outside the CSRD and serve value chain relations.
Thanks to this, smaller companies will be able to report according to lighter guidelines tailored to their capacities, while larger companies will not be able to demand data from them beyond this standard.
What does this mean for businesses?
The postponement of the ESG reporting obligation does not mean the topic can be put on the back burner. Companies should use the additional time not only for formal preparation for reporting but primarily for a strategic approach to managing the ESG area – including risk and opportunity analysis, data organization, and integrating sustainability goals with operational and financial activities.
In particular, it is worth:
- organize environmental and social data within the company,
- conduct a materiality analysis and identify key indicators,
- prepare the team and implement necessary processes,
- assess how ESG affects the company’s position in the value chain, access to financing, and relations with investors.
It is also worth emphasizing that many companies – especially global ones or suppliers to large capital groups – are already under informational pressure from their contractors and stakeholders. Even if formal obligations have been postponed, market expectations remain unchanged.
Is this the end of changes in ESG regulations?
Legislative work on amending the CSRD is ongoing. The European Commission has announced further consultations and an impact assessment of the regulation, both for companies subject to reporting obligations and for the entire financial market.
In the background, there is also a discussion about modifying the CSDDD (Corporate Sustainability Due Diligence Directive), whose enactment will also be delayed. Work is underway to simplify due diligence requirements and adapt them to the realities of cross-border operations.
All of this points to one thing: the ESG reporting system in Europe is still evolving, and the final scope of obligations may still change. Therefore, companies should not only monitor developments but also flexibly adjust their approach – combining reporting preparations with a long-term sustainable development strategy.
The role of a PR agency in ESG communication – strategic support in times of transformation
With the growing importance of sustainable development and the introduction of the CSRD directive, ESG communication is becoming an integral part of business strategy. Today, it is not only a matter of reputation but also an essential aspect of responsible business management, as well as a tool for risk management, stakeholder engagement, and strengthening competitive position.
In this context, PR agencies are playing an increasingly important role – not only as intermediaries in media relations, but as strategic partners supporting companies in achieving social responsibility goals and implementing due diligence policies.
A well-prepared ESG communication strategy requires not only knowledge of regulations and trends but also the ability to create a coherent, understandable, and engaging message.
PR agencies help companies – especially medium-sized ones, which often have limited resources – to organize and prioritize ESG messages. This enables focusing on key activities from the audience’s perspective while avoiding content overload or communication chaos.
One of the most important tasks of an agency in the ESG communication area is building a coherent narrative. Social responsibility activities are often scattered across different departments of enterprises – a PR agency supports in consolidating them, giving them context, and translating them into a language of benefits understandable to various stakeholder groups: from employees and customers to the media, investors, and local communities.
Equally crucial is adapting the language and form of the message – not every initiative requires presence in traditional media, but neither is every initiative suitable only for social media activities. An experienced PR agency will help select the appropriate communication channels and ensure the right tone.
It is also worth emphasizing the role of the PR team in responding to dynamic changes in the legal and social environment. The world of ESG regulations is changing rapidly – from the aforementioned “stop-the-clock” directive, through the evolution of reporting standards, to the changing expectations of consumers and investors. The agency can support the company in the ongoing interpretation of these changes, updating communication strategy, and managing potential reputational crises that in the future may result not only in loss of reputation but also financial penalties in case of non-compliance with regulations.
Effective ESG communication is not only storytelling but also relationships. PR agencies help enterprises build long-term ties with key stakeholder groups – from journalists and non-governmental organizations to business partners.
Thanks to this, the enterprise gains not only professional operational support but also a partner who understands the social, regulatory, and reputational context in which it operates.
Summary
The “stop-the-clock” directive and the Omnibus I package are a clear response from the European Union to the needs of companies and a signal that sustainable development policy will be implemented in a more thoughtful way and adapted to market realities. The postponement of reporting obligations is a temporary buffer, but not a release from responsibility. Companies that already invest today in data, systems, and ESG strategy will gain an advantage – not only regulatory but also business.
