The deadline for the EU Commission to publish certain reporting standards under the EU Corporate Sustainability Reporting Directive (CSRD) has been delayed from 30 June 2024 to 30 June 2026.
The CSRD, which came into force in January 2023, sets out disclosures for companies to include in their annual report in relation to sustainability matters. Even though the UK is not part of the EU, the CSRD will impact some UK incorporated companies. The EU Commission is responsible for adopting delegated regulations setting out the detailed standards to be applied by companies when making the sustainability disclosures under the CSRD. The first of these, the general standards, were adopted in July 2023 (for more details on these standards, see our ESG blog post).
The Commission is now required to adopt the sector-specific standards, and the general reporting standards for third-country parent consolidated reporting, by 30 June 2026. Companies will fall within the scope of the third-country parent consolidated reporting obligation where they are EU subsidiaries, or branches, of non-EU entities which meet certain size thresholds, and where the parent entity’s group has significant turnover in the EU.
The obligation on EU subsidiaries/branches to report in line with the standards adopted by the Commission is unchanged and will still apply from financial years beginning on or after 1 January 2028.
For more details on the CSRD, see our corporate governance snapshot here.
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