European Parliament approves delay of certain ESRSs
Apr 17, 2024
On April 17, 2024, the European Parliament voted to postpone the adoption of sector-specific European Sustainability Reporting Standards (ESRSs) and ESRSs for third-country entities by two years, until June 30, 2026. The aim is to rationalize reporting obligations for companies and reduce related administrative burdens while providing more time to EFRAG for the development of the reporting standards.
The vote follows a political agreement between the Council of the EU and the EU Parliament in February 2024.
EU companies will still have to report as planned in line with general sustainability reporting standards adopted by the European Commission in July 2023. Later adoption of sector-specific standards for EU companies affects the extent of reporting, as the sector-specific part about companies’ particular impact on people and the planet in their area of activity will not be required before 2026.
The Parliament vote does not affect the reporting timelines as agreed under the Corporate Sustainability Reporting Directive (CSRD). As a next step, the legal text needs to be formally approved by the Council of the European Union before becoming effective.
Access the press release on the European Parliament’s website.