The European Parliament has backed a two-year delay in the development of sustainability reporting requirements for companies outside the EU and specific sectors. The approval follows the European Commission's proposal in October to postpone the timeline for the adoption of the CSRD, which was first set out in its Commission Work Programme for 2024. The proposal also extends the reporting timeline for companies based outside the European bloc, which will now have until 2026 to start complying with the CSRD.

In its proposal, the Commission stated that it recognises the “additional burden” that these reporting requirements pose for companies and aims to simplify these requirements and reduce such burden by 25%. The aim of the postponement is to give companies additional time to focus first on implementing the broader sustainability reporting requirements set out in the CSRD. ( More at  bestexecution.net,  author : Lynn Strongin Dodds)