EU Delays Sustainability Reporting As Lawmakers Work On Simplification

The European Union (EU) has delayed the next phase of reporting under the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).

The European Commission initiated changes in February to simplify requirements and reduce the regulatory burden. A package of proposals delays CSRD reporting for certain non-EU entities and postpones the first application of CSDDD until 2028. Legislators in the European Council and Parliament supported the delay while revising the scope of both laws. The Commission stated that the changes could remove around 80% of companies from CSRD compliance. Discussions on simplification may take up to a year. Over 3,000 U.S. firms were previously expected to fall under CSRD, drawing criticism from U.S. lawmakers.