EU Commission amendment to CSRD
11/07/2025
The European Commission has adopted targeted “quick fix” amendments to the first set of European Sustainability Reporting Standards (ESRS). This aims to reduce the burden and increase certainty for companies that began reporting for financial year 2024 often referred to as “wave one” companies.
Under the current ESRS, wave one companies were already allowed to omit certain disclosures in their 2024 reports, such as the anticipated financial effects of sustainability-related risks, specific scopes of value chain data, and some own workforce characteristics. The new amendment extends this flexibility to financial years 2025 and 2026, meaning these companies will not be required to report additional information compared to their 2024 disclosures.
This quick fix was necessary because wave one companies were not included in the two-year delay granted to wave two and three companies under the “Stop-the-Clock” proposal.
The Commission is also working on a broader revision of the ESRS, with the goal of reducing the number of required data points, clarifying unclear provisions, and improving alignment with other EU legislation. This review is expected to be completed in time for financial year 2027.
The Omnibus Simplification Package, adopted on 26 February 2025, narrowed the scope of the Corporate Sustainability Reporting Directive (CSRD) to reduce administrative burdens, by 25% for all businesses and 35% for SMEs. The CSRD now applies only to EU companies with 1,000+ employees and either €50 million turnover or €25 million in assets. For non-EU companies, the threshold is €450 million turnover in the EU. This change is expected to exclude around 80% of companies originally in scope.
For more details, you can read the official update from the European Commission here.
For background on the Omnibus Package and the “Stop-the-Clock” proposal, see UKFT’s previous update here.
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