Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedReporting 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.

RemovedThe 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.

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

RemovedThe 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.

RemovedThe 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.

RemovedThe 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.

RemovedIt 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.