Brussels (Brussels Morning) ā The European Councilās final approval extends reporting deadlines under the Corporate Sustainability Reporting Directive, allowing more time for companies to adopt European Sustainability Reporting Standards and develop sector-specific criteria.
The European Council has given its final consent to the directive on time limits for the adoption of sustainability reporting standards for specific sectors and third-country undertakings, which revises the Corporate Sustainability Reporting Directive (CSRD) to provide the companies concerned more period to apply European Sustainability Reporting Standards (ESRS). This is the final step in the decision-making process.
How Will Companies Adapt to Revised Reporting Deadlines?
According to the Press of Council, the directive assumed will postpone the adoption of sector-specific sustainability reporting measures for European Union companies and general sustainability reporting standards for non-EU companies to 30 June 2026. This will permit companies to concentrate on the implementation of the first set of ESRS and restrict the reporting requirements to a required minimum. It will also permit more time to develop these sector-specific sustainability criteria and standards for non-EU companies.
What Are the Next Steps After Council Approval?
In the next steps following the Councilās approval of the European Parliamentās position, the legislative action has been adopted. After being marked by the President of the European Parliament and the President of the Council, the directive will be issued in the Official Journal of the European Union and will come into force on the twentieth day following its publication.
What Benefits Does the Extension Offer Companies?
In its communication āLong-term competitiveness of the EU: peeking beyond 2030ā, the Commission determined reporting as one of the main burdens for businesses in general and for SMEs in particular. Therefore, it suggested reducing reporting responsibilities by 25% without undermining the underlying policy objectives.
Current EU law mandates listed companies to disclose information about the threats and opportunities arising from social and environmental problems. On 31 July 2023, the Commission adopted the first cross-cutting criteria and standards for all sustainability issues.Ā
What Changes Can Companies Expect in Reporting Requirements?
The directive adopted today enforces a two-year postponement for the publication of sector-specific standards and standards for non-EU companies to deliver companies more time to apply the first batch of measures and prepare for the next ones. The directive is part of the foremost package of measures to explain reporting requirements and is consistent with the SME Relief Package.Ā
