European Union member states have agreed to delay the adoption of specific sustainability reporting standards for certain industries and non-EU companies by two years.
The new date for the adoption of the ESRS for non-EU companies will be postponed to the end of June 2026, while the deadline for specific sector ESRS will also be delayed for 2 years.
The decision, finalised on Monday (29 April) impacts the European Sustainability Reporting Standards (ESRS) which form part of the broader Corporate Sustainability Reporting Directive (CSRD).
The directive aims to increase transparency on environmental and social issues, comprising a key element of the European Green Deal, which outlines the EU’s plan to become carbon-neutral by 2050.
Companies will still be required to comply with the initial, general sustainability reporting requirements which comprise the ESRS, referring to the cross-cutting standards and topical standards on the same timeline. However, they will have more time to prepare for the upcoming industry-specific standards and those designed for non-EU companies.
Read next: How to prepare for ESRS reporting
The Commission has been asked by the Council and Parliament to publish sector-specific sustainability reporting standards in eight areas as soon as they are ready before the 2026 deadline.
The delay was initially proposed by the EU Commission in October as part of its 2024 Commission Work Programme, after the Commission identified reporting as one of the main burdens for companies in general and for SMEs in particular.
The change looks to remedy this by allowing companies to focus on the implementation of the first set of ESRS and limit the reporting requirements to a necessary minimum.
The European Parliament and Council reached a provisional agreement in February to adjust the timeline, and Monday finalised this process when member states formally approved the change.
With final approval secured, the legislative act is now officially adopted. It will come into effect on the twentieth day after its publication in the Official Journal of the European Union.
