EU sustainability reporting shifts reshape compliance landscape

The European Commission is scaling back and delaying key Corporate Sustainability Reporting Directive (CSRD) obligations, easing the burden on thousands of companies. New thresholds could remove up to 82% of businesses from scope, delivering billions in savings but sparking warnings over data gaps for investors.

Large listed firms remain on the original timeline, but others will benefit from multi-year delays and streamlined European Sustainability Reporting Standards, cutting administrative demands by 25%. The “Stop the Clock” Directive, Omnibus reforms, and a “Quick Fix” Delegated Act aim to simplify compliance while the EU reviews the 1,200 data points currently required.

Ireland’s latest regulations bring its framework in line with these changes, removing automatic “large” status for certain entities and expanding exemptions for subsidiaries. However, complex group structures and non-EU parent companies may still face earlier or overlapping obligations, making scope assessment critical.

With reporting timelines shifting and rules tightening in some areas while loosening in others, the challenge for business leaders is to use the breathing room wisely – to prepare systems, ensure data integrity, and future-proof compliance strategies.

Read the full analysis to see how these changes could impact your reporting strategy.