Commission offers ESRS “quick fix” to ease early reporting burden
The European Commission has adopted a “quick fix” to the European Sustainability Reporting Standards (ESRS), aimed at reducing immediate pressures on wave one companies, meaning those already subject to corporate sustainability reporting for financial year 2024 onwards.
The move follows the earlier “stop-the-clock” decision passed in April, which delayed reporting obligations under the Corporate Sustainability Reporting Directive (CSRD) for wave two and three companies by two years. However, wave one companies were excluded from that delay. The quick fix addresses this imbalance, extending transitional relief and effectively preventing wave one firms from facing stricter short-term requirements than those that follow.
The amendment allows these companies to omit certain disclosures, including the anticipated financial effects of sustainability risks, for financial years 2025 and 2026. It also grants larger wave one companies access to phase-in provisions previously available only to smaller entities.
While temporary, this adjustment is part of a broader review of the ESRS underway, expected to conclude before (too) long. That review aims to simplify data demands, clarify reporting expectations, and align ESRS more closely with other legislative frameworks.
As the standards evolve, structured digital reporting remains essential. Even simplified disclosures must be machine-readable, consistent and fit for decision-making.
More on the ESRS “quick fix” here.
