Over the past months, we have invested significant time and effort into understanding and implementing the European Sustainability Reporting Standards (ESRS). We carefully reviewed all 284 pages of the standard, developed workflows and templates, and navigating the complexities of double materiality assessments. This preparation was not only a technical exercise—it was a commitment to credible, forward-looking sustainability reporting.
Throughout this process, it became clear that the complexity of the ESRS was often amplified. In many cases, the standard was portrayed as nearly impenetrable, which contributed to growing concern among companies. This perception—sometimes encouraged by parts of the consulting and auditing industry—played a key role in shaping the debate around implementation (tight) timelines.
As a result, several industry associations and lobby groups called for more time and flexibility. The outcome: the European Parliament approved the so-called “stop-the-clock” initiative, effectively delaying key reporting requirements by two years under the omnibus proposal.
While the delay gives businesses more time to prepare, it also postpones meaningful progress on sustainability transparency. Many companies were already taking concrete steps to align with the ESRS. For them, this decision introduces uncertainty at a time when consistency and clarity are most needed.
The two-year pause should not be mistaken for a reset. The direction is clear, and the expectations remain. The challenge now is to use this time wisely—to improve internal readiness, build capacity, and continue preparing for what is still to come.
Source: EU Press Release