The European Council and Parliament reached a compromise regarding the Corporate Sustainability Reporting Directive (CSRD) in February, delaying some of the sector standards and certain third-country firms’ reporting a few years.
ESRS
The cross-cutting standards, regardless of sector, were adopted in July 2023 with the sector and third-country standards set to follow less than a year later, in June 2024. However, since October of last year, the legislators have been debating delaying these requirements by a few years.
With this most recent compromise, the new standards are expected by 30 June 2026, though the MEPs requested the publication of the standards as soon as they are ready, ideally long before the deadline. This is given to allow more time to develop these specific standards and focus on applying the universal requirements without overburdening companies with obligations.
One way to achieve this objective [of boosting European competitiveness] is to reduce the administrative burden on companies. Today’s agreement limits reporting requirements to the minimum and gives companies time to implement the ESRS and prepare for the sectorial European Sustainability Reporting Standards.
Vincent Van Peteghem, Belgian Deputy Prime Minister and Minister of Finance
Despite this delay, the third-country companies operating in the EU will still be required to report in 2028, as established in the original CSRD. Other firms, including large EU listed and non-listed companies, will be reporting earlier than this, starting in January 2025 for 2024 data.
This decision now needs to be officially adopted by both institutions.
Sources:
– Council of the EU, Press Release, 7 Feb 24
– Mark Segal, ESG Today, 24 Jan 24
