Council adopts directive to delay reporting obligations for certain sectors

The Council has given its final approval to the directive on time limits for the adoption of sustainability reporting standards for certain sectors and third country undertakings, which amends the Corporate Sustainability Reporting Directive (CSRD).

This is the last step in the decision-making procedure.

More time to prepare reporting

The directive adopted today will postpone the adoption of sector-specific sustainability reporting standards for EU companies and general sustainability reporting standards for non-EU companies  to 30 June 2026. This will allow companies to focus on the implementation of the first set of ESRS and limit the reporting requirements to a necessary minimum. It will also allow more time to develop these sector specific sustainability standards and standards for non-EU companies.

Next steps

Following the Council’s approval today of the European Parliament's position, the legislative act has been adopted.

After being signed by the President of the European Parliament and the President of the Council, the directive will be published in the Official Journal of the European Union and will enter into force on the twentieth day following its publication.

Background

In its communication ‘Long-term competitiveness of the EU: looking beyond 2030’, the Commission identified reporting as one of the main burdens for companies in general and for SMEs in particular. Therefore, it proposed reducing reporting obligations by 25% without undermining the underlying policy objectives.

Current EU law requires listed companies to disclose information about the risks and opportunities arising from social and environmental issues. On 31 July 2023, the Commission adopted the first cross-cutting standards and standards for all sustainability topics. The directive adopted today implements a two-year postponement for the publication of sector specific standards and standards for non-EU companies in order to give companies more time to apply the first batch of standards and prepare for the next ones. The directive is part of the first package of measures to rationalise reporting requirements and is consistent with the SME Relief Package.