BlogpostThe European Commission has announced major changes to the Corporate Sustainability Reporting Directive (CSRD). The goal? Reducing administrative burdens while focusing on companies with the greatest impact on people and the environment. These changes bring significant simplifications—good news for many businesses, but also a shift that requires strategic adjustments.
What’s Changing?
1. Fewer Companies Required to Report
Around 80% of companies will now be excluded from CSRD obligations. The directive will focus on large enterprises, which typically have the most significant influence on sustainability. This means many mid-sized companies will no longer be required to report.
2. Extended Deadlines for Existing Obligations
Companies that were expected to report under CSRD by 2026 or 2027 now have an additional two years, with reporting obligations postponed until 2028.
3. More Flexibility in Reporting
- EU Taxonomy reporting requirements will be relaxed and apply only to the largest companies.
- Businesses will have the option to report on sustainability initiatives that are not yet fully aligned with the EU Taxonomy, allowing for a gradual transition.
- Administrative burdens will be further reduced by eliminating the most complex criteria, such as the “Do No Significant Harm” (DNSH) requirements.
What Does This Mean for Businesses?
Less administration: The estimated savings on administrative costs amount to €6.3 billion per year.
Reduced pressure on SMEs: Large companies will no longer be able to demand excessive information from smaller partners in their supply chains.
More time to prepare: The additional two years allow companies to better integrate sustainability strategies into their operations.
What’s Next?
The proposals are now being reviewed by the European Parliament and the Council. Once approved, the changes will be formally implemented and published in the EU Official Journal.
These updates are a step toward smarter and more efficient sustainability reporting. By shifting the focus to companies with the largest impact and reducing bureaucratic hurdles, sustainability remains a priority—without unnecessary complexity.
Curious about how these changes might affect your business? ImpactBuying is closely monitoring developments and can help you navigate a future-proof sustainability strategy.