EU delays ESRS reporting requirements
May 7, 2024
New directive postpones ESRS obligations, aiding sectors and third-country companies in compliance readiness.
The Council of the European Union recently adopted a directive delaying for two years the European Sustainability Reporting Standards (ESRS) obligations for specific industries and third-country companies. The directive aims to reduce regulatory pressure and allow for adequate compliance preparation.
This directive affects certain sectors that are particularly impacted by stringent EU regulations. By providing a postponement, the Council seeks to facilitate a smoother transition for these sectors into full compliance with EU standards, avoiding the potential disruptions that immediate enforcement could cause.
The decision reflects the Council’s strategic approach to balancing economic support with regulatory objectives, ensuring that the integrity of the EU’s regulatory framework is maintained while supporting ongoing business activities. The Council President remarked, “This directive underscores our commitment to a balanced regulatory environment that fosters both compliance and economic growth.”
This adjustment is particularly crucial for third-country companies, which may face significant challenges in adapting to the EU’s regulatory environment. The directive not only aids in maintaining a fair competitive landscape but also emphasises the EU’s commitment to practical and equitable regulatory enforcement.
Categories : World Focus
Tags : Business ESRS EU EU Regulations
