In March 2023, the European Commission celebrated the 30th anniversary of the single market. In order to meet the challenges ahead, the European Commission published a communication listing various issues which the EU would need to address to stay competitive in the years to come. The Commission expressed its concern regarding the growing list of reporting requirements for companies and expressed its intention to reduce the reporting burden by 25%.

On 17 October, the European Commission tabled a series of proposals which all aim to lower the reporting burden for companies of all sizes.

One proposal concerns the issue of sector-specific sustainability reporting, The Accounting Directive (2013/34/EU) as amended by the Corporate Sustainability Reporting Directive (CSRD - 2022/2464) requires large companies and listed small and medium-sized companies (SMEs), as well as parent companies of large groups, to include in a dedicated section of their management report the information necessary to understand the company’s impacts on sustainability matters. Certain sectors will need to report about sustainability matters and reporting areas specific to the sector in which they operate.

In order to reduce the reporting burden, the Commission proposed to postpone the current deadline of sector-specific sustainability reporting (currently June 2024) by two years (to June 2026). 

The proposal was subject to the ordinary legislative procedure, requiring support from both the Council and the European Parliament. In Parliament, the file was assigned to rapporteur Axel Voss (EPP, Germany).

The Council and the European Parliament reached a provisional agreement on 7 February 2024, agreeing to delay sustainability reporting for certain sectors and third-country companies by two years. The European Parliament adopted the agreement on 10 April 2024, followed by the Council on 29 April.

The final act was published in the Official Journal of the EU on 8 May 2024.

• EP Legislative observatory, Proposal for a decision of the European Parliament and of the Council amending Directive 2013/34/EU as regards the limits for the adoption of sustainability reporting standards for certain sector and for certain third-country undertakings, 2023/0368 (COD)
• European Commission, Communication on the Single Market at 30, March 2023
• European Commission, Proposal for a decision of the European Parliament and of the Council amending Directive 2013/34/EU as regards the limits for the adoption of sustainability reporting standards for certain sector and for certain third-country undertakings, October 2023
• The European Economic and Social Committee, Opinion, January 2024
• Council of the EU, Mandate for negotiations with the European Parliament, January 2024
• Council of the EU, Council and Parliament agree to delay sustainability reporting for certain sectors and third-country companies by two years, February 2024
• European Parliament, Report on amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings, April 2024
• Official Journal of the EU, Directive (EU) 2024/1306 of the European Parliament and of the Council of 29 April 2024 amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings, May 2024