UKFT provides an update on the Omnibus Simplification Package for UK fashion and textile businesses. It was adopted by the European Commission on 26 February 2025 and aims to simplify EU rules, enhance competitiveness and attract investment. It includes amendments to the CSRD and CS3D to reduce administrative burdens by 25% for all businesses and 35% for SMEs 3. The package focuses on making sustainability reporting more efficient and less burdensome.

Here is what UK fashion and textile businesses need to know…

On 14 April 2025, the Council of the European Union approved the “Stop-the-Clock” proposal, which postpones the application of certain corporate sustainability reporting and due diligence requirements. This proposal delays the CSRD requirements for large companies and listed SMEs by two years (from 2025 to 2027) and the transposition deadline and first phase of CS3D application by one year (from 2027 to 2028).

Corporate Sustainability Reporting Directive (CSRD)

The CSRD is an EU law requiring large companies and listed companies to disclose information on their social and environmental performance and impact. It aims to improve the reliability and usefulness of sustainability information for investors, civil society organisations, consumers and other stakeholders. The CSRD uses European Sustainability Reporting Standards (ESRS) developed by EFRAG.

Corporate Sustainability Due Diligence Directive (CS3D)

The CS3D is a comprehensive policy that requires in-scope companies to address sustainability risks and negative impacts throughout their business activities. It mandates companies to identify and address adverse human rights and environmental impacts within their operations, subsidiaries, and value chains. The directive aims to foster sustainable and responsible corporate behaviour.

Scope Before and After ‘Stock the Clock’

CSRD

Before: EU companies with over 500 employees and either €40 million turnover or €20 million in assets; non-EU companies with €150 million turnover in the EU.

After: EU companies with over 1,000 employees and either €50 million turnover or €25 million in assets; non-EU companies with €450 million turnover in the EU.

CS3D

Before: EU companies with over 500 employees and €150 million turnover; non-EU companies with €150 million turnover in the EU.

After: EU companies with over 1,000 employees and €150 million turnover; non-EU companies with €450 million turnover in the EU.

Reporting timelines

• CSRD wave 1 reporting in 2024 remains unchanged for companies already under the Non-Financial Reporting Directive (NFRD).
• Wave 2 is delayed to 2027.
• Wave 3 to 2028.
• CS3D application is now expected from 2028.

Please refer to the “Stop-the-Clock” proposal for further information.

Support for UKFT members

More detailed information is available for UKFT members. Get in touch by emailing info@ukft.org.

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