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Article

7 Feb 2024

Author:
EU Parliament

Deal on delayed reporting standards for some companies

Negotiators of the Legal Affairs Committee agreed with EU governments on the proposed delay in adoption of sector-specific sustainability reporting standards and general sustainability reporting standards for non-EU companies by two years until 30 June 2026. The new rules do not affect the reporting timelines as agreed under Corporate Sustainability Reporting Directive, but they affect the extent of reporting for EU companies, as the sector-specific part will only be required from 2026 on.

Although the negotiators agree with the delay, as the companies would still have to report on time against general sustainability reporting standards adopted by the Commission in July 2023, MEPs consider sector-specific reporting by companies key for enabling comparisons and thus to be a valuable source of information for investors, especially when it comes to companies in high-risk sectors such as oil, gas and mining.

That is why the MEPs ensured that the Commission will strive to publish sector-specific sustainability reporting standards in eight areas as soon as they are ready before the deadline. While the negotiators do not specify which eight areas should be addressed first, they want to be regularly consulted at least once yearly on the plans in the development of the sustainability reporting standards by the responsible institution - European Financial Reporting Advisory Group (EFRAG) and receive detailed information on prioritisation and timeline adopted.

Timeline