On the proposal for a decision of the European Parliament and of the Council on amending Directive 2013/34/EU as regards the time limits for the… adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

Reporting requirements play a key role in ensuring correct enforcement and proper monitoring of legislation. However, they also impose extra burden on companies, mainly SMEs. The Commission acknowledges that and therefore it has committed to rationalise and simplify reporting requirements with the ultimate objective of reduction of such burdens by 25%. This exercise should nevertheless not undermine the related policy objectives.

The recently adopted corporate sustainability reporting directive (CSRD) requires certain companies to report the information necessary to understand company's impacts on sustainability matters, and the information necessary to understand how sustainability matters affect the company's development, performance and position. Such information is reported in accordance with the standards to be adopted by the Commission by means of delegated acts.

The first set of general standards applicable to all undertakings under the CSRD scope was adopted by the Commission on 31 July 2023.

The second set of standards which are sector specific standards and standards under Article 29b(1) and standards for certain non-EU companies with business in the Union under Article 40b are set to be adopted by 30 June 2024.

The Commission proposes to give the companies sufficient time to prepare for any new reporting requirements and postpone the adoption of the second set of standards by two years, to 30 June 2026.

The rapporteur fully shares this assessment and objectives of this proposal as companies need more time to digest the first set of standards and to focus on their proper implementation. At the same time this extra time would give EFRAG and the Commission sufficient time to properly reflect on the development of effective and proportionate second set of the reporting standards, including via consultations with relevant stakeholders.

It needs to be noted that EU companies have recently been facing many challenges and heavy bureaucratic burden in times of the COVID pandemic as well as the war in Ukraine and its impact on energy prices etc. Postponing the adoption date of 2 years will be very relevant for companies under CSRD scope to recover while it will not negatively affect the achievement of the objectives in the area of sustainability reporting.

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

The list above is drawn up under the exclusive responsibility of the rapporteur.

12.1.2024

for the Committee on Legal Affairs

on the proposal for a decision of the European Parliament and of the Council amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

(COM(2023)0596 – C90386/2023 – 2023/0368(COD))

Rapporteur for opinion: Jessica Polfjärd

The Corporate Sustainability Reporting Directive (CSRD) requires large companies, listed small and medium-sized companies, and parent companies of large groups to report certain sustainability information.

This reporting must follow standards that are to be adopted by the Commission through delegated acts. A first general set of such standards was adopted by the Commission in July 2023. A second sector specific set of standards is scheduled to be adopted by June 2024.

As part of its competitiveness agenda, the Commission has committed to simplify reporting requirements for companies. The Commission has therefore proposed to postpone the adoption of the second set of standards under the CSRD by two years. This would mean these standards are adopted in June 2026 instead of June 2024, as currently foreseen.

The rapporteur is of the opinion that this postponement will give companies necessary breathing space while ensuring the proper and full implementation the new sustainability requirements under the CSRD. No amendments to the Commission’s decision are therefore proposed.

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The Committee on Economic and Monetary Affairs calls on the Committee on Legal Affairs, as the committee responsible, to propose that Parliament adopt its position at first reading, taking over the Commission proposal.