EU approves 2 year delay for reporting obligations for certain sectors and third country companies

The Council has given its final approval to a directive amending the Corporate Sustainability Reporting Directive (CSRD). The directive grants companies in certain sectors and non-EU undertakings more time to adopt European Sustainability Reporting Standards (ESRS). The adoption of sector-specific sustainability reporting standards for EU companies and general sustainability reporting standards for non-EU companies will be postponed until 30 June 2026. This allows companies to focus on implementing the initial set of ESRS and reduces reporting requirements to a necessary minimum. The directive is part of a package of measures aimed at rationalizing reporting obligations and aligns with efforts to alleviate the burden on companies, particularly small and medium-sized enterprises (SMEs). Following the approval from the Council, the legislative act has been adopted. Once signed by the Presidents of the European Parliament and the Council, the directive will be published in the Official Journal of the European Union and will become effective twenty days after publication. This decision extends the timeline for companies to comply with sustainability reporting standards, providing them with more time to prepare for the adoption of sector-specific standards and standards for non-EU companies. The directive is in line with the Commission’s goal of reducing reporting burdens while maintaining the policy objectives and is part of the broader effort to streamline reporting requirements and support SMEs. Resources: https://esgnews.com/eu-approves-2-year-delay-for-reporting-obligations-for-certain-sectors-and-third-country-companies/