European sustainability reporting standards (ESRS) – postponement of deadlines under the Accounting Directive

The European Commission has published a press release in which it informs that it is seeking comments on its 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. The proposal was published in the Official Journal (OJ) of the EU on October 17, 2023 (EventID 23359).
The decision would postpone the time limits under Article 29b and Article 40b of the Accounting Directive (Directive 2013/34) mandating the European Commission to establish sustainability reporting standards via delegated acts by June 30, 2024, specifying the information that companies must report regarding sustainability matters and sector-specific reporting areas. Specifically, the deadline would be postponed to June 30, 2026 in an effort to reduce the current reporting burden on companies and to allow them time to prepare for their reporting requirements under the Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD).
Although both deadlines for EU-member states undertakings and for non-EU firms would be delayed, non-EU companies won’t be subject to the sustainability reporting requirements until financial year 2028 anyway. The adoption of the June 30, 2026 deadline date for non-EU firms would be for consistency purposes only.
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Comments on this proposal may be submitted to the Commission up to December 19, 2023 via the provided link.