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illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:
🗞️ Driving the news: The European Council has recently approved a delay in the full enactment of the Corporate Sustainability Reporting Directive (CSRD), postponing sector-specific sustainability reporting standards and obligations for non-EU companies until 2026
• This decision extends the timeline for both the adoption of the general sustainability reporting standards and the sector-specific requirements
🔭 The context: Originally adopted in November 2022, the CSRD mandated sustainability reporting for EU businesses from 2024
• It introduced European Sustainability Reporting Standards (ESRS), developed by the European Financial Reporting Advisory Group (EFRAG), with initial standards set to take effect in 2024 for large companies, and later expanding to include smaller enterprises
🌍 Why it matters for the planet: The ESRS aims to enhance transparency in environmental, social, and governance (ESG) practices across industries, critical for tracking progress on climate action and other sustainability goals
• The delay could affect the pace at which these sustainability measures are adopted and reported, potentially impacting environmental accountability
⏭️ What's next: With the implementation now set for 2026, businesses have additional time to prepare for compliance
• However, this delay might also slow the overall momentum towards greater sustainability in corporate operations, especially if further postponements occur following the 2024 EU elections
💬 One quote: "As ESG and sustainable reporting continues to face political backlash and legal challenges from the business sector, I expect there will be further changes to the CSRD," says Jon McGowan, attorney and contributor
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