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Stop-the-Clock directive: transposition progress in Central and Eastern Europe
The Stop-the-Clock Directive (Directive (EU) 2025/794), which postpones the application of certain provisions of the EU's Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), giving companies breathing room and time to prepare for new sustainability reporting and due diligence requirements, is to be transposed by 31 December 2025. It has been gradually transposed across Central and Eastern Europe. Here’s a short overview of its transposition status: Country Status Austria Not yet transposed
ESG legal update: Central and Eastern Europe and Central Asia regions (Q3 2025)
Drawing on insights from Kinstellar’s ESG Service Line members, we present you summary of the most recent regulatory and policy updates impacting ESG across the Central and Eastern European and Central Asian region. Q3 of 2025 saw continued momentum in ESG regulation, marked by following themes. First, progress on the transposition of the Corporate Sustainability Reporting Directive (EU) 2022/2464 (CSRD) and related due diligence legislation under the new direction of the Omnibus proposals remained uneven across the region. Several countries managed to adjust timelines and thresholds in response to the EU’s Directive (EU) 2025/794 (the Stop-the-Clock Directive). At the same time, national authorities are moving
Stop-the-Clock directive: Where things stand in Kinstellar jurisdictions
As part of the European Commission’s agenda to simplify and enhance competitiveness in relation to sustainability reporting obligations under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), the EU adopted the Stop-the-Clock Directive in April 2025. This directive postpones reporting obligations for certain companies under both the CSRD and the CSDDD. Member States are required to transpose these adjustments to the reporting timeline by 31 December 2025, but progress varies across jurisdictions. To help you navigate the changes where it matters most, we’ve summarised the latest legislative steps and timelines in the jurisdictions where Kinstellar
ESG legal update: Central and Eastern Europe and Central Asia regions (Q2 2025)
Our ESG Legal Update provides a snapshot of recent regulatory developments across Central and Eastern Europe and Central Asia, with input from Kinstellar’s ESG Service Line members. Several cross-border trends emerge. The transposition of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) remains ongoing in many jurisdictions, often delayed or adapted in response to recent EU-level changes. In parallel, regulators in multiple countries—such as Austria, the Czech Republic, Turkey, and Ukraine—are strengthening ESG risk management requirements in the financial sector. There is also a clear push toward more robust environmental compliance and
Update on the implementation of CS3D and CSRD, and related local legislative developments in Bulgaria, Croatia, the Czech Republic, Hungary, Romania, and Slovakia
Despite the 6 July 2024 transposition deadline for the full implementation of the Corporate Sustainability Reporting Directive (CSRD), several jurisdictions – including the Czech Republic and Romania – remain subject to infringement proceedings initiated by the European Commission in September 2024 for failing to fully communicate their national measures. It remains unclear how this infringement process will proceed, particularly in light of the postponement of the second wave of the reporting obligation, as approved under the so-called “stop-the-clock” directive incorporated into the Omnibus I package. At the same time, and also as a consequence of the “stop-the-clock” directive – which postponed the
Kinstellar announces new Partner promotions
Kinstellar is delighted to announce the promotion to Partner of Magdalena Raducanu (Romania), Jan Lehký (Czech Republic), and Kuanysh Shekerbekov (Kazakhstan). Magdalena Raducanu is based in our Bucharest office and leads the Romanian Banking & Finance Service Line. She also serves as the co-head of the firm-wide Banking & Finance Service Line. Magdalena has more than 20 years of experience in all aspects of banking and financing, including project, real estate, and corporate finance as well as financial regulatory matters. Recently, she has dedicated significant efforts assisting banks on various ESG-related mandates. Magdalena joined Kinstellar in 2021 from the Bucharest office of Dentons. Since joining
ESG legal update: Central and Eastern Europe and Central Asia regions
The end of 2024 and the beginning of 2025 marked a period of uncertainty in the ESG regulatory landscape. Across both Kinstellar’s EU and non-EU jurisdictions, stakeholders awaited the Omnibus I package, expected to introduce significant changes to ESG compliance and reporting frameworks. The release of Omnibus I in late February 2025, along with the implementation of key directives – particularly the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) – has brought fresh uncertainties. Regulators are now reassessing their legislative roadmaps, with potential delays to national transpositions and even postponements of already implemented ESG regulations.
Status of CSRD transposition in Central and Eastern Europe and its legal implications
Kinstellar hosted a special webinar event on 11 February 2025, focusing on the latest status of transposition of the Corporate Sustainability Reporting Directive (CSRD) in Central and Eastern Europe as well as some other legal and regulatory updates relevant to ESG in EU neighbouring countries. The webinar provided valuable insights into the crucial legal factors in preparing for CSRD reporting and a comprehensive understanding of key ESG rules being rolled out in the CEE and beyond. Topics covered: Status of CSRD transposition in Bulgaria, Croatia, Czech Republic, Hungary, Romania and Slovakia Legal considerations of CSRD reporting Other ESG regulatory updates in Serbia, Turkey and
ESG legal update: Central & Eastern Europe and Central Asia regions
The past year has seen a flurry of regulatory developments related to Environmental, Social and Governance (ESG), particularly in the alignment of climate, environmental and reporting rules across the Central and Eastern Europe and Central Asia regions. Although the deadline for transposition of the Corporate Sustainability Reporting Directive (EU) 2022/2464 (CSRD) passed in July 2024, not all EU member states have managed to fully implement the directive. The European Commission has initiated infringement proceedings against 17 member states, including the Czech Republic and Romania, and it remains to be seen whether it will take further steps in the infringement procedure. Attention is turning to the Corporate
Update on the ESG reporting obligations in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia
The Corporate Sustainability Reporting Directive (EU) 2022/2464 (the “CSRD”) required EU member states to complete its transposition by 6 July 2024. However, uneven implementation led the EU Commission to initiate infringement proceedings against 17 member states, including the Czech Republic and Romania, on 26 September 2024, citing their failure to fully communicate the necessary transposition measures. These states now face a two-month deadline to finalise the process and respond to the formal notice. While the CSRD’s transposition is nearing completion, attention is turning to the Corporate Sustainability Due Diligence Directive (EU) 2024/1760 (the “CSDDD”), an equally significant piece of legislation.
Update on the ESG reporting obligations in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia
CSRD implementation uneven a month before deadline June 2024 – With less than a month to go before the 6 July 2024 deadline for transposing the EU Corporate Sustainability Reporting Directive (EU) 2022/2464 (the "CSRD", the “Directive”), countries in Central and Eastern Europe (“CEE”) are still at different stages of implementation. While Romania and Slovakia have completed their legislative processes, Bulgaria and Croatia are still in the legislative pipeline. The Czech Republic and Hungary have completed, at least partially, their transposition, with additional legislation still to be implemented, albeit within uncertain timeframes. For a more comprehensive overview of each stage of the progress on CSRD transposition
Update on the ESG reporting obligations in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia
CSRD implementation: regional progress uneven as deadline draws near As the 6 July 2024 deadline for implementation of the EU Corporate Sustainability Reporting Directive (EU) 2022/2464 (the "CSRD") approaches, a new landscape of reporting standards is beginning to take shape across Central and Eastern Europe ("CEE"). Three of the six countries in CEE (the Czech Republic, Hungary and Romania) adopted legislative acts in the beginning of 2024 that, at least partially, implement the CSRD into national legislation. The progress in Slovakia, Bulgaria and Croatia however has been slower. Our third status update on the CSRD implementation in Bulgaria, Croatia, the Czech Republic, Hungary, Romania and Slovakia is available here. For