In response to stakeholder concerns, the European Commission is making significant changes to the Corporate Sustainability Reporting Directive (CSRD) to simplify reporting obligations for businesses across the EU.

This initiative is part of the broader Omnibus Simplification Package published in February 2025, which aims to reduce red tape and refine the CSRD and related directives.

As part of these changes, the 'Quick Fix' Delegated Act adopted on July 11, 2025, grants Wave 1 companies additional time to meet certain reporting requirements, deferring disclosures that were originally due in 2025 and 2026.

Moreover, the proposed revisions will delay the implementation of the CSRD for specific large companies not included in the first reporting wave, pushing their deadlines from 2026 to 2028.

A notable revision includes redefining 'large undertaking' by increasing the employee threshold from 250 to 1,000, which is projected to reduce the number of companies subject to CSRD requirements by 75-82%.

Initially established in 2022, the CSRD aims to alleviate the reporting burden, particularly for smaller companies, and the first compliant reports have started to surface.

Additionally, the 2025 regulation enhances exemptions for Irish subsidiaries of EU parent companies, thereby reducing duplicative reporting obligations and aligning with the CSRD framework, although some compliance uncertainties remain.

These changes are expected to yield significant financial savings, estimated at over €6 billion, with €3.2 billion saved annually by companies that will be removed from the CSRD scope.

In parallel, Ireland has enacted its own regulations to incorporate the CSRD into national law, clarifying criteria for what constitutes a large company and addressing uncertainties for businesses.