EU Lawmakers approve 2 year delay of Sustainability Reporting Standards for specific sectors and non-EU companies

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🗞️ Driving the news: The European Parliament's Legal Affairs Committee voted 21-2 to approve a two-year delay in implementing sector-specific sustainability reporting standards and requirements for non-EU companies under the Corporate Sustainable Reporting Directive (CSRD)
• This postponement, initially proposed by the EU Commission, affects the European Sustainability Reporting Standards (ESRS) and is part of the EU's 2024 Commission Work Programme

🔭 The context: The ESRS, established under the CSRD, mandates companies to report on sustainability impacts, opportunities, and risks
• Originally, sector-specific ESRS and regulations for large non-EU companies operating in the EU were to be adopted by June 2024, with reporting starting in 2028
• The delay aims to reduce reporting burdens and grant the European Financial Reporting Advisory Group (EFRAG) more time to develop these standards

🌍 Why it matters for the planet: This delay in implementing detailed sustainability reporting requirements may impact the pace at which companies address and disclose their environmental and social impacts
• However, it also provides time for more comprehensive and industry-specific standards to be developed, potentially leading to more effective sustainability reporting in the long term

⏭️ What's next: The proposal will now proceed to the Parliament plenary for approval, determining the EU's negotiating position with the EU Council
• The MEPs have called for the publication of the standards before the new deadline and requested annual consultations with the Commission on the progress

💬 One quote: "We will delay the deadline for sector-specific standards under the CSRD by two years in order to give EFRAG the time to develop quality standards and give companies the time to put them into practice." (Axel Voss, rapporteur)

📈 One stat: 21-2 - The vote count by which the EU Parliament's Legal Affairs Committee approved the proposal

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