Companies: EU postpones standards for sustainability reporting

The European Union wants to postpone the adoption of additional rules for corporate sustainability reporting by two years. As the representative of the member states announced, representatives of the governments and the European Parliament agreed on a corresponding approach. It is intended to enable better preparation of the planned regulations and relieve the burden on companies.

It was originally planned that the EU Commission would adopt an additional package of standards for sustainability reporting by June 30, 2024. These should, among other things, determine which sector-specific information must be disclosed in addition to general information. This is now not scheduled to happen until June 30, 2026. The same applies to planned standards for certain small and medium-sized companies as well as for companies from non-EU countries.

The first package with specific new requirements for sustainability reporting by companies was adopted in the summer of 2023 and will have to be observed by certain large EU companies for the first time in 2025, looking back at the 2024 financial year. Among other things, it specifies which basic information on climate protection, energy and water consumption as well as supply and value chains must be published.

Small businesses are excluded

In the years that followed, the circle of companies subject to accountability requirements continued to expand. However, small businesses are excluded. The first companies from non-EU countries will not have to report on the 2028 financial year until 2029.

The aim of sustainability reporting is to help investors make investment decisions. The EU also hopes that disclosure of sustainability information will mobilize additional investment and funding to facilitate the transition to a sustainable economy. For example, the EU member states have set themselves the goal of becoming climate neutral by 2050.