European Parliament rejects bid to weaken ESG reporting rules

The European Parliament Strengthens Commitment to Sustainability Reporting Standards for 2024 Implementation.

On October 18, members of the European Parliament rejected a proposal that would have weakened the European Sustainability Reporting Standards (ESRS), allowing the final adoption of rules for companies to report their sustainability impacts, opportunities, and risks. These standards will apply to large and listed companies in the EU starting next year and to non-EU companies operating in Europe by 2028.

Eelco van der Enden, CEO of the Global Reporting Initiative (GRI), an independent sustainability reporting organisation, described this action as a shift from political debate to practical implementation of new rules that will significantly enhance corporate accountability in the EU and worldwide. The ESRS and GRI standards aim to work together smoothly, with GRI developing digital tools to simplify the reporting process.

In its October 17, 2024 agenda, the European Commission suggested delaying reporting rules for specific sectors by two years and giving non-EU companies doing business in the EU until June 2026 to comply. The agenda also addressed various sustainability and climate-related initiatives, including a 2040 climate target, a wind power package, strategies for managing industrial carbon emissions, and an effort to enhance water resilience.