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Sustainability Reporting Standards

EU member states in the European Council have greenlit a directive deferring the adoption of standards for sector-specific sustainability disclosures and sustainability reporting from companies outside the EU under the Corporate Sustainability Reporting Directive (CSRD). This decision, which follows the European Parliament’s earlier approval, finalizes the postponement of the European Sustainability Reporting Standards (ESRS) for sectors and non-EU entities. Initially proposed by the EU Commission in October as part of its 2024 Commission Work Programme, the delay aims to alleviate reporting burdens and allow companies to concentrate on implementing the first set of ESRS. The ESRS, mandated by the CSRD, require companies to report on sustainability impacts, opportunities, and risks. While the first set of ESRS rules was adopted in July 2023, the directive pushes back the deadline for sector-specific and non-EU company standards to the end of June 2026. This extension offers companies additional time to prepare for compliance while urging the Commission to expedite the development of sector-specific reporting standards.

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