EU Commission adopts “Quick Fix” to ESRS Requirements for Early Reporting Companies
The European Commission has adopted a targeted amendment to the European Sustainability Reporting Standards (ESRS). The update introduces temporary relief measures for companies that began reporting under ESRS in the financial year 2024. These companies are often referred to as “wave one” reporters.
Who Is Affected by CSRD Quick Fix amendments?
The changes apply to:
- All companies required to report under ESRS starting in the financial year 2024 (“wave one”)
- Larger companies with more than 750 employees within this group
These companies were not covered by the earlier “stop-the-clock” Directive, which delayed reporting obligations for later groups (“wave two” and “wave three”) starting from financial years 2025 and 2026
What CSRD Quick Fix Changes?
- Extended omission rights: For financial years 2025 and 2026, companies can continue omitting certain disclosures, such as the expected financial impacts of some sustainability-related risks.
- Expanded phase-in provisions: Companies with more than 750 employees will now benefit from most of the same transitional measures already granted to smaller companies.
- No new disclosure obligations: Reporting requirements for 2025 and 2026 remain consistent with those applied for 2024.
When Does CSRD Quick Fix Apply?
The amendment applies from the financial year 2025 and covers financial years of 2025 and 2026. Companies that reported under ESRS in 2024 will not be required to disclose additional information during this period.
Why Does CSRD Quick Fix Matter?
Wave one companies were not covered by the “stop-the-clock” Directive, which postponed reporting deadlines for companies starting in 2025 and 2026. Without the “Quick Fix”, early reporters would have faced stricter requirements sooner than others.
What’s Next For CSRD after Quick Fix?
A full review of the ESRS is already underway. The Commission aims to reduce data requirements, clarify unclear rules, and ensure the standards align better with other EU laws. The revised standards are expected to be in place by the financial year 2027.
Need support with CSRD or evolving regulatory requirements? Get in touch!
