As reported by the European Council on 7 February 2024, the Council and the European Parliament reached a provisional agreement on a directive regarding the deadlines for the adoption of sustainability reporting standards for certain sectors and certain non-EU companies amending the Corporate Sustainability Due Diligence Directive (CSRD). The agreement is intended to give companies more time to prepare for the sector-specific European Sustainability Reporting Standards (ESRS) and specific standards for large non-EU companies, which are due to be adopted in June 2026 - two years later than originally planned. Increasing European competitiveness appears to have played a central role in the agreement for the Belgian Presidency. In order to achieve this goal, the postponement is a way of reducing the administrative burden for companies.
Commission proposal
- EU law requires listed companies to disclose information on the risks and opportunities arising from social and environmental aspects in order to help investors, civil society, consumers and other stakeholders assess the environmental and social sustainability of their activities.
- This must be followed by sector-specific standards and standards for companies from third countries with a turnover of €150 million in the EU that have at least one subsidiary or branch in the EU.
- All of these new standards were planned for 30 June 2024.
- The agreed directive postpones the adoption of the new standards until 30 June 2026.
- This should enable companies to concentrate on implementing the first ESRS package.
- In addition, more time will be made available for the development of sector-specific sustainability standards and standards for certain companies from third countries.
- The effective date for companies from third countries remains the 2028 financial year, as set out in the CSRD.
Next steps: The provisional agreement reached with the European Parliament still needs to be endorsed and formally adopted by both sides.
No time to follow further developments in the area of CSRD in detail? trade-e-bility keeps you up to date with the Legal Monitoring Service.
Is your company affected by the CSRD? Take precautions now in good time: The trade-e-bility management consultancy will work with the responsible employees in your company to set up a sustainability management system in small steps to ensure that you are prepared for the new requirements by the time they are introduced. Christopher Blauth and Jens Haasler will be happy to answer your questions. You can request a non-binding orientation meeting at beratung@trade-e-bility.de.
