EU finalises delay to sector specific sustainability standards
The European Parliament has taken the final, expected step in officially approving a directive to delay the implementation of sector-specific sustainability disclosure standards and reporting requirements for companies outside the EU under the Corporate Sustainability Reporting Directive (CSRD).
Approving the directive is the EU Council’s final procedure required to postpone the sector-specific and third country undertaking European Sustainability Reporting Standards (ESRS) – something that has been working its way through the various processes since October 2023.
Initially proposed as part of the EU Commission’s 2024 Work Programme to reduce reporting burdens, the two-year delay in the updated directive aims to give companies more time to prepared for increased reporting requirements, and for the European Financial Reporting Advisory Group (EFRAG) to develop new, sector specific standards.
Nevertheless, we would encourage companies to get a head start by thinking digital from the outset – early adoption of digital reporting practices will help companies stay on top of regulatory changes, create digital-ready processes, and prepare internally for fast approaching mandatory digital disclosure.
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