EU shift in the supply chain directive: Trefelik calls for clarity!

EU shift in the supply chain directive: Trefelik calls for clarity!

On April 3, 2025, Rainer Trefelik, chairman of the federal trade division in the Austrian Chamber of Commerce, spoke positively about the recently decided postponement of regulations by the EU Parliament. These changes are aimed at improving the competitiveness of European companies, particularly small and medium-sized enterprises (SMEs).

A key measure includes postponing the sustainability reporting requirements for the so-called “Wave 2 and 3 companies” by two years. This means that the first reporting will only take place in 2028 about the year 2027. “Wave 2” refers to large companies that are not required to report this year, while “Wave 3” includes listed SMEs. In addition, the implementation deadline of the Supply Chain Directive will be extended by another year to 2028.

Details about the new regulations

However, it remains important to note that large companies with more than 500 employees must continue to report for 2024 as planned. Formal adoption of the deadline changes by the Council is required for these postponements to take effect. Trefelik also calls for the regulations to be simplified and the regulations to be implemented in a practical way for companies.

The original regulations for sustainability reporting still apply, which leads to confusion for many companies. To address these problems, the European Commission is planning a simplification as part of the Omnibus I package, particularly aimed at SMEs. In this context, Trefelik emphasizes the need to adapt the content and requirements of sustainability reporting, supply chain law and taxonomy and to publish guidelines in a timely manner.

Outlook for future developments

The postponed deadlines could provide affected companies with much-needed time to prepare for the new requirements. The Commission will continue to work to improve conditions for companies faced with complex regulations.

For more information about the planned changes and the impact on businesses, those interested can read the full report from the European Commission at here see.

In summary, the recent regulatory adjustments by the EU Parliament present both challenges and opportunities for European companies, with clear communication and support from the relevant institutions being key.

For detailed information on Trefelik's assessment of the situation, please click here link.