Connect with us

European Commission

Commission adopts 'quick fix' for companies already conducting corporate sustainability reporting

SHARE:

Published

11 months ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The Commission has adopted targeted “quick fix” amendments to the first set of European Sustainability Reporting Standards (ESRS). This will reduce burden and increase certainty for companies that had to start reporting for financial year 2024 (commonly referred to as “wave one” companies), Directorate-General for Financial Stability, Financial Services and Capital Markets Union.

According to the current ESRS, companies reporting on financial year 2024 can omit information on, amongst other things, the anticipated financial effects of certain sustainability‑related risks. The “quick fix” amendment, which applies from financial year 2025, will allow them to omit that same information for financial years 2025 and 2026.

This means wave one companies will not have to report additional information compared to financial year 2024. Moreover, for financial years 2025 and 2026, wave one companies with more than 750 employees will benefit from most of the same phase‑in provisions that currently apply to companies with up to 750 employees. You can find here a summary of the modifications.

This quick fix was necessary because wave one companies were not captured by the “stop‑the‑clock” Directive, which delayed by two years the sustainability reporting requirements for companies that report from financial year 2025 and 2026 (so‑called “wave two” and “wave three” companies). This Directive was part of the Omnibus I package adopted by the Commission at the end of February 2025.

Meanwhile, the Commission is working on a broader revision of the European Sustainability Reporting standards (ESRS), with the aim of substantially reducing the number of data requirements, clarifying provisions deemed unclear and improving consistency with other pieces of legislation. It is expected that this review will be completed by financial year 2027.

Documents

Corporate sustainability reporting

Corporate sustainability reporting - Implementing and delegated acts

Advertisement

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending