The EC’s long-awaited sustainability reporting rules proposal has moved away from mandatory reporting indicators and made some disclosures entirely voluntary.
The European Commission on Friday released a series of proposed changes to the European Sustainability Reporting Standards (ESRS), the rules and requirements for companies to report on sustainability-related impacts, opportunities and risks under the EU’s upcoming Corporate Sustainable Reporting Directive (CSRD).
The Commission’s proposals were released as a draft Delegated Act, along with a consultation requesting feedback on the new rules, which will be open until July 7.
Summary of Key Points:
- European Commission’s Proposal: The Commission released proposed changes to the European Sustainability Reporting Standards (ESRS), linked to the upcoming Corporate Sustainability Reporting Directive (CSRD).
- Consultation Period: The draft Delegated Act is open for feedback until July 7.
- Key Amendments:
- Extended phase-in times for smaller companies and first-time reporters.
- Flexibility for companies to focus on material sustainability factors.
- Easing reporting requirements, particularly around Scope 3 value chain emissions.
- CSRD Scope: Set to apply in 2024, expanding sustainability reporting requirements to over 50,000 companies (from 12,000) and introducing more detailed reporting on environmental, social, and human rights impacts.
- Background: The amendments follow the ESRS draft submitted by the European Financial Reporting Advisory Group (EFRAG) in November 2022, in response to the European Commission’s mandate for updated sustainability reporting standards.
Click here to access the draft delegated act.
