ESRS “quick fix” comes into play… probably?
Earlier this week the “quick fix” to the European Sustainability Reporting Standards (ESRS) was published in the Official Journal of the European Union, formally enshrining temporary relief measures for early reporters. Adopted by the European Commission in July, the Delegated Act entered into force yesterday (13 November), and applies to financial years from 1 January 2025. That means it impacts reports published from next year onward…. but read on to discover the twist in this story.
This amendment extends transitional relief to “wave one” companies who were already subject to the Corporate Sustainability Reporting Directive (CSRD). This means that for the next two financial years, they can omit information on the expected financial impacts of sustainability risks. Larger wave one firms (with over 750 employees) will also now benefit from the same phase-in measures previously reserved for smaller entities.
The move follows an earlier deferral granted in April to later waves of CSRD filers, creating concerns about uneven reporting obligations. The quick fix addresses this imbalance, easing the initial reporting burden for early adopters as the broader ESRS framework undergoes refinement.
Now — having said all of that, the changes proposed in the Omnibus (see above) go a lot further. Presumably the specific differences will be worked out in the upcoming “Trilogue” negotiations between the Parliament, Council (ie: Member States) and Commission. It seems likely that the turnover and staffing thresholds will increase to €450 million and 1750 staff members. For now? Our sympathies go out to Wave 1 filers — they have yet more uncertainty to endure.
You can read more in the official publication here.
