Further to indications in the Commission Work Programme for 2024 and the EFRAG Sustainability Reporting Work Programme for 2024, the European Commission has opened for public consultation its proposal to amend the Accounting Directive as regards the time limits specified for the adoption of sector-specific European Sustainability Reporting Standards (ESRS) and the ESRS for certain third country undertakings.
These ESRS were due to be adopted by 30 June 2024 however the Commission is seeking to delay the adoption date by two years. The consultation runs from 24 October 2023 to 19 December 2023 and feedback received will feed into the legislative debate with the European Parliament and Council on the proposed delay.
Companies within scope of the Corporate Sustainability Reporting Directive (CSRD) are required to prepare a sustainability statement in accordance with ESRS which set out the information that must be reported. The Commission adopted the first set of ESRS on 31 July 2023. This set of ESRS are sector agnostic meaning they apply to reporting companies regardless of the sectors in which they operate. The first set of ESRS are due to be published in the Official Journal and will apply for financial years commencing on or after 1 January 2024 (for companies within scope of the first phase of reporting under CSRD).
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.