European Commission Adopts Revised EU Sustainability Reporting Standards
In-house counsel for companies subject to the EU Corporate Sustainability Reporting Directive must act because the revised standards will alter mandatory sustainability disclosure requirements for upcoming reporting cycles.
The European Commission has formally adopted revised European Sustainability Reporting Standards (ESRS), updating the initial 2023 framework governing mandatory sustainability disclosures for companies subject to the EU Corporate Sustainability Reporting Directive (CSRD). The revisions narrow general disclosure requirements to reduce reporting burdens, clarify pending sector-specific standards, and align ESRS requirements with parallel EU sustainability rules including the Corporate Sustainability Due Diligence Directive. The updated standards apply to reporting periods starting on or after January 1, 2024, with first disclosures due in 2025 for large public interest entities and 2026 for other large covered undertakings. In-house counsel should review the updated standards against their company’s upcoming CSRD reporting timelines, adjust internal disclosure processes, and confirm cross-alignment with due diligence obligations to avoid noncompliance penalties.