European Commission extends transitional reliefs in amendments to the ESRS for ‘wave one’ entities
European Commission extends transitional reliefs in amendments to the ESRS for ‘wave one’ entities
The European Commission (EC) has introduced targeted ‘quick fix’ amendments to the European Sustainability Reporting Standards (ESRS) to alleviate the reporting burden and provide greater certainty for companies that began reporting in the financial year 2024, known as ‘wave one’ companies.
These amendments allow companies reporting on financial year 2024 to omit certain information, such as the anticipated financial effects of sustainability-related risks, for the financial years 2025 and 2026, which mirrors 2024 requirements.
Additionally, ‘wave one’ companies with more than 750 employees will have the majority of same phase-in provisions as smaller companies. This adjustment was necessary because ‘wave one’ companies were not included in the ‘stop-the-clock’ directive, which delayed reporting requirements for later waves.
The EC is also working on a broader revision of the ESRS to reduce data requirements and improve clarity and consistency, expected to be completed by 2027.
More details and the delegated act are available in the press release.
These amendments allow companies reporting on financial year 2024 to omit certain information, such as the anticipated financial effects of sustainability-related risks, for the financial years 2025 and 2026, which mirrors 2024 requirements.
Additionally, ‘wave one’ companies with more than 750 employees will have the majority of same phase-in provisions as smaller companies. This adjustment was necessary because ‘wave one’ companies were not included in the ‘stop-the-clock’ directive, which delayed reporting requirements for later waves.
The EC is also working on a broader revision of the ESRS to reduce data requirements and improve clarity and consistency, expected to be completed by 2027.
More details and the delegated act are available in the press release.