The landscape of corporate sustainability in Europe is undergoing significant recalibration. The European Commission has announced a series of amendments, described as “quick fixes”, to the European Sustainability Reporting Standards (ESRS), delaying the implementation of several new reporting requirements for large companies already reporting under the Corporate Sustainability Reporting Directive (CSRD).
These changes are part of the broader Omnibus I package, which aims to reduce regulatory complexity and lighten the sustainability reporting burden on businesses. But for many organisations, the announcement also raises new questions: what’s expected now, what’s been delayed, and how can companies use this window to prepare?
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What’s changing?
The adopted amendments primarily affect large companies already in the first wave of CSRD reporting (those with over 500 employees). Key changes include:
- A two-year delay for new disclosures previously scheduled for years two and three of reporting, such as biodiversity, value chain workers, and Scope 3 emissions.
- Companies with fewer than 750 employees may omit certain disclosures, including Scope 3 emissions and value chain workforce data, through financial year 2026.
- Companies with more than 750 employees will benefit from similar delays, excluding the Scope 3 omission, which still applies.
- Companies previously set to start reporting in 2026 or 2027 now fall under a ‘stop-the-clock’ directive, delaying their reporting start dates pending the outcome of the broader CSRD review.
The delay stems from growing concerns over the administrative burden of sustainability reporting and the sheer volume of data required under the CSRD. The European Financial Reporting Advisory Group (EFRAG) has been tasked with cutting CSRD datapoints by two-thirds.
This signals the EU’s move toward simpler, more proportionate reporting, without losing sight of transparency. The Commission expects the full review of the EU sustainability reporting standards to be completed by FY 2027.
Conclusion: A strategic pause, not a step back
The delay in implementing new EU sustainability reporting standards is not a signal of diminished ambition; it’s a recalibration. The core principles of the CSRD remain unchanged: double materiality, transparent supply chain data, and credible, decision-useful disclosures. What’s shifting is the pace and complexity, not the end goal.
For companies, this temporary relief presents a strategic opportunity. Rather than waiting for regulatory clarity, forward-thinking organisations will use this window to build internal capability, strengthen ESG data systems, and prepare for what’s next. The most resilient businesses will be those that embed sustainability into every function.
Now is the time to:
- Build ESG literacy across teams
- Strengthen supplier engagement and data readiness
- Identify capability gaps around ESRS requirements
- Align with global frameworks like TCFD, GRI, and ISSB
The companies that act now will meet future reporting requirements, but also gain investor trust, improve operational resilience, and lead with integrity in an ever-shifting landscape. Book a call with our team to discover how our corporate sustainability training can support your organisation in transforming compliance into a competitive edge.
Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
