The Corporate Sustainability Reporting Directive (CSRD) was transposed in Ireland on 6 July 2024 through S.I. No. 336/2024, giving clarity and certainty to those preparing their first reports for the 2024 financial year.
With regard to relief for Wave 1 companies, the European Commission adopted a set of “quick fix” amendments to the first set of European Sustainability Reporting Standards (ESRS) in July 2025. These amendments are intended to reduce burden and increase certainty by allowing Wave 1 companies to omit certain information, including the anticipated financial effects of specified sustainability-related risks, for Financial Years 2025 and 2026.
Regarding the broader structural simplification measures contained in the Omnibus package, the agreed revisions will substantially change the scope of the Directive once adopted, limiting CSRD to companies with more than 1,000 employees and €450 million in net turnover. As a result, some entities currently reporting in Wave 1 that fall below these thresholds may ultimately fall outside the scope of CSRD once the revised Directive enters into force. Those that remain within scope will benefit from the simplification of ESRS, including a reduction in the number of data points and improved clarity across the standards.
The Department is assessing the implications of these agreed changes and will bring forward a consolidated Statutory Instrument by mid-2026 to give business the legal certainty it needs. At present, no additional domestic measures for Wave 1 entities are under consideration, with the Department continuing to support simplification efforts at EU level.
I trust this clarifies the matter for the Deputy.
