A few months ago, Members of the European Parliament (MEPs) approved a two-year extension for the development of sector-specific European Sustainability Reporting Standards (ESRS), including standards for non-EU companies.
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A few months ago, Members of the European Parliament (MEPs) approved a two-year extension for the development of sector-specific European Sustainability Reporting Standards (ESRS), including standards for non-EU companies. Read more in our January blogpost.
Following the plenary approval, the European Parliament started negotiations with EU governments to finalize the legislation. During the plenary meeting on April 10, 2024, the Parliament confirmed its agreement with EU governments. This postpones the adoption of sector-specific sustainability reporting standards for EU companies and general standards for non-EU companies until around June 2026.
The Commission has drafted a proposal that includes the following:
- The adoption deadline for sector-specific sustainability reporting standards is postponed by two years to June 2026.
- These standards (ESRS) will specify what information companies in certain sectors must disclose about their impact on people and the planet (e.g., decarbonization, biodiversity, human rights).
- Delaying the specific standards will allows companies to focus on implementing the initial set of general ESRS adopted on July 31, 2023.
Sector-Specific Standards and Investor Information:
- MEPs recognize that sector-specific standards facilitate comparisons between companies and provide valuable information for investors.
- While MEPs agree with the delay, they recommend publishing eight sector-specific reporting standards as soon as they are ready.
- They call for transparency, flexibility, and annual consultation with the European Parliament regarding progress and planning by the European Financial Reporting Advisory Group (EFRAG).
cleversoft currently offers a service for the sector agnostic standard. We are closely monitoring the upcoming sector specific and non-European company standards and will extend our Standards CSRD Service to cover these as well.
In case you would like to see our current offering, visit our website. Feel free to contact us via the contact form on our website. Our experts will be happy to advise you on the details.