Two months before European Sustainability Reporting Standards (ESRS) were set to go into effect, non-European Union companies have been granted two additional years to prepare.
The new legislation includes a two-year delay on industry-specific reporting requirements for all companies across the globe after the European Council approved the European Parliament’s position to amend the Corporate Sustainability Reporting Directive (CSRD) that features the ESRS.
Along with EU companies, certain large non-EU companies listed on an EU-regulated market previously were subject to the CSRD beginning 30 June, with ESRS disclosures required beginning with the 2024 fiscal year. The new legislation pushes the start date for those non-EU companies back to 30 June 2026, with ESRS disclosures now required beginning with the 2026 fiscal year.
While the CSRD still goes into effect for EU companies this 30 June, the two-year delay for industry-specific sustainability reporting requirements in the CSRD also applies to EU companies.
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.
