An update on the stop-the-clock proposal and the ESRS simplification mandate
Published 6 May 2025
Category: Impact and ESG
On 29 April 2025, a majority of the Danish Parliament agreed on the “stop-the-clock” directive which will go to a formal vote in the fall to adopt the proposal into Danish legislation. The Danish Business Authority recommends that companies which are to be covered by the scope of CSRD in 2025 and 2026 postpone their current planned activities and preparations in regard to sustainability reporting. The update from the Danish Business Authority can be accessed here (in Danish).
You can read more about the stop-the-clock directive in our previous update. In regard to the Omnibus package in general from EU, which the stop-the-clock proposal is a part of, we recommend also reading our update looking into the package and its impact.
The ESRS simplification mandate
An essential part of the Omnibus process is to simplify the current sustainability standards and data points (the ESRS’) which the European Financial Reporting Advisory Group (“EFRAG”) has produced.
The EU Commission expects that the ESRS standards are revised no later than 31 October 2025. Consequently, EFRAG’s Sustainability Reporting Board (SRB) approved 25 April 2025 its comprehensive and fast-tracked work plan to deliver its technical advice by 31 October 2025. Based on the work plan, EFRAG’s goal is to produce a set of revised ESRS that better support relevant and decision-useful general purpose sustainability statements, while leading to a substantial reduction of both the reporting effort and the mandatory datapoints. Further, to support the communication of the anticipated burden reduction associated to the various amendments, a high-level impact assessment document will accompany the revised standards released at the end of October.
EFRAG’s work plan and timeline for the ESRS revision can be accessed here.
Next step: The “stop-the-clock” directive is expected to be formally adopted by the Danish Parliament this fall. That, along with the development of the ESRS standards, are both processes which are monitored closely by the Mazanti ESG team.
Tags: CSDDDCSRDSustainability
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