EU puts back new standards for sustainability reporting by two years

Brussels : The European Union has decided to postpone the adoption of additional regulations for corporate sustainability reporting by two years.

Representatives of member states and the European Parliament agreed late on Wednesday to delay the introduction of the regulations, the European Council said.

The postponement should enable better preparation of the planned regulations and reduce the burden on companies, the European Council said.

The original plan was for the European Commission to adopt an additional package of sustainability reporting standards by June 30,2024. These are intended to determine which sector-specific information must be disclosed in addition to general information.

This is now not due to happen until June 30, 2026. The same applies to planned standards for certain small and medium-sized enterprises and for companies from non-EU countries.

The first companies from outside the EU will not have to report until2029, for the 2028 financial year.

The aim of sustainability reporting is to help investors make informed decisions. The EU also hopes that the disclosure of sustainability information will mobilize additional investment and funding to facilitate the transition to a sustainable economy.

EU member states have set themselves the goal of becoming climate-neutral by 2050.-- DPA