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Sustainability reporting standards: new time limits for the adoption of delegated acts by the Commission

By Directive (EU) 2024/1306, new time limits for the adoption by the European Commission of sustainability reporting standards for certain sectors and for certain third-country undertakings are established. Consequently, article 29b (Sustainability reporting standards) and 40b (Sustainability reports concerning third-country undertakings) of Directive 2013/34/EU of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings are modified. The date of effect of this modification is 28 May 2024. This amending text gives more time for companies to prepare for the sectorial European Sustainability Reporting Standards (ESRS) and for specific standards for large non-EU companies, which will be adopted in June 2026, 2 years later than the originally scheduled date.

According to those modifications, the Commission shall, by 30 June 2026 (instead of 2024), specify in delegated acts:
• complementary information that undertakings are to report with regard to the sustainability matters and reporting areas listed in Article 19a(2) (information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position to integrate in the management report) , where necessary;
• information that undertakings are to report that is specific to the sector in which they operate. The Commission will also have to adopt delegated acts containing 8 of the sustainability reporting standards as soon as each is ready.

Concerning the sustainability reporting standards for third-country undertakings, the Commission will have to adopt by 30 June 2026 (instead of 2024) a delegated act supplementing this Directive to provide for sustainability reporting standards for third-country undertakings that specify the information that is to be included in the sustainability reports referred to in Article 40a.

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