The European Council recently approved 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) to give the companies concerned more time to apply European Sustainability Reporting Standards (ESRS).

The directive adopted will postpone the adoption of sector-specific sustainability reporting standards for companies in the European Union (EU) and general sustainability reporting standards for non-EU companies to June 30, 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, an official release said.

It will also allow more time to develop these sector-specific sustainability standards and standards for non-EU companies.

After being signed by the presidents of the European Parliament and the Council, the directive will be published in the official EU journal and will enter into force on the twentieth day following its publication.

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 small and medium enterprises (SMEs) in particular. Therefore, it proposed reducing reporting obligations by 25 per cent 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 July 31 last year, the Commission adopted the first cross-cutting standards and standards for all sustainability topics.

Fibre2Fashion News Desk (DS)

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