On Wednesday 24 January, with 21 votes in favour and 2 against, MEPs on the Committee on Legal Affairs (JURI) adopted their negotiating position on the deadlines for the adoption of sustainability reporting standards for certain sectors and certain third-country companies (see EUROPE 13302/21). They approved the later adoption initially proposed.
“We will delay the deadline for sector specific standards under the Corporate Sustainability Reporting Directive (CSRD) by two years in order to give EFRAG (European Financial Reporting Advisory Group, editor’s note) time to develop quality standards and give companies the time to put them into practice”, commented the text’s rapporteur, Axel Voss (EPP, German), in a press release.
“Companies have been putting up with too much bureaucracy in years of crisis, from Covid to inflation”, he added.
On 1 January, the European Sustainability Reporting Standards (‘ESRS’) came into force for large companies (see EUROPE 13302/21). At the request of the European Commission, EFRAG will assist these companies in their implementation (see EUROPE 13218/14). It has therefore proposed a two-year delay in the adoption of sector-specific ESRS for third-country companies. MEPs approved the postponement from 30 June 2024 to 30 June 2026. They want the Commission to work towards adopting the eight sustainability reporting standards as soon as they are ready.
MEPs also want to improve the transparency and flexibility of the process, and are calling on the Commission to consult Parliament on the progress of the ESRS at least once a year. They also want to be kept informed of the planning, prioritisation and timetable adopted by EFRAG in this context.
During the exchange of views with EFRAG that took place just before the vote, Patrick de Cambourg, Chairman of the Sustainability Reporting Board, explained that EFRAG would give priority to sectors with a greater impact on sustainability. This relates in particular to: - oil, coal and gas extraction; - road transport; - agriculture and food; - energy; - textiles; - financial services.
“In line with the Memorandum of Understanding we signed in December 2023, GRI will continue to work closely with EFRAG to ensure a high level of commonality between GRI Sector Standards and the ESRS, which will benefit reporters and other stakeholders”, commented Peter Paul Van De Wijs, Global Reporting Initiative (GRI) Chief Policy Officer (see EUROPE 13306/26).
This negotiating position must first be approved by the plenary session before discussions can begin with the Council of the EU. Read the MEPs’ position: https://aeur.eu/f/ajx (Original version in French by Anne Damiani)