- Proposed Legislative Changes: The European Commission’s omnibus proposals (Proposal I and II) aim to reduce sustainability reporting and due diligence requirements by postponing certain deadlines and modifying the scope of entities required to comply with the Corporate Sustainability Reporting Directive (CSRD) and related regulations. Key changes include delaying the effective dates by two years and raising the thresholds for reporting entities, particularly for U.S. companies, from €150 million to €450 million in net turnover.
- Impact on U.S. Entities: U.S. companies that fall under the revised criteria will still be subject to CSRD compliance, with many entities potentially needing to reassess their reporting strategies due to the new thresholds and scope. The proposals emphasize the importance of monitoring developments, as many U.S. entities may still need to report under the CSRD and related regulations, despite the simplifications.
- Next Steps and Preparations: U.S. entities should continue to prepare for compliance with the CSRD and other sustainability reporting requirements, leveraging existing efforts. Companies are encouraged to enhance their data, processes, and controls in light of the extended timelines, while also considering the potential adoption of voluntary sustainability reporting standards for SMEs as outlined in the proposals.
Source Deloitte
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