{"id":13977,"date":"2025-05-22T10:15:49","date_gmt":"2025-05-22T10:15:49","guid":{"rendered":"https:\/\/axevera.com\/?p=13977"},"modified":"2025-05-22T10:15:50","modified_gmt":"2025-05-22T10:15:50","slug":"csrd-draft-delegated-act-from-the-european-commission-introduces-temporary-exemptions-for-wave-1-companies","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/05\/22\/csrd-draft-delegated-act-from-the-european-commission-introduces-temporary-exemptions-for-wave-1-companies\/","title":{"rendered":"CSRD: Draft Delegated Act from the European Commission Introduces Temporary Exemptions for Wave 1 Companies"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <strong>European Commission<\/strong> has published a <strong>draft Delegated Act<\/strong> proposing significant <strong>temporary exemptions from reporting obligations<\/strong> under the <strong>Corporate Sustainability Reporting Directive (CSRD)<\/strong> for companies in the <strong>first wave (Wave 1)<\/strong>. This initiative is part of the broader simplification package known as <strong>\u201cOmnibus\u201d<\/strong>, aimed at easing regulatory burdens and supporting a manageable transition to ESG reporting.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/Sfondo-immagini-sito-web-21-1-1024x576.jpg\" alt=\"\" class=\"wp-image-13978\" style=\"width:518px;height:auto\" srcset=\"https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/Sfondo-immagini-sito-web-21-1-1024x576.jpg 1024w, https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/Sfondo-immagini-sito-web-21-1-300x169.jpg 300w, https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/Sfondo-immagini-sito-web-21-1-768x432.jpg 768w, https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/Sfondo-immagini-sito-web-21-1-1536x864.jpg 1536w, https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/Sfondo-immagini-sito-web-21-1.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Regulatory Context and Motivation for Change<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In recent months, European debate has focused on balancing <strong>ESG transparency<\/strong> with <strong>economic competitiveness<\/strong>. The <strong>Draghi Report on European Competitiveness<\/strong> and the <strong>Budapest Declaration<\/strong> both underscored a political will to simplify regulations, particularly for SMEs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new Delegated Act responds to these priorities by aiming to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reduce administrative burdens<\/strong> for smaller and mid-sized businesses;<\/li>\n\n\n\n<li><strong>Avoid complex and potentially redundant reporting<\/strong> ahead of possible future exemptions from the CSRD;<\/li>\n\n\n\n<li><strong>Prevent repeated adaptations<\/strong> to standards that are likely to change again by 2027.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Who Is Affected?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The provisions apply to <strong>Wave 1 companies<\/strong>, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Public interest entities with more than 500 employees;<\/li>\n\n\n\n<li>Consolidated groups exceeding certain size thresholds;<\/li>\n\n\n\n<li>Listed companies, banks, insurance firms, and other entities defined as &#8220;public interest entities.&#8221;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The most notable change is the introduction of a <strong>distinction based on company size<\/strong>, particularly whether the entity has <strong>more or less than 750 employees<\/strong>. This threshold affects exemption eligibility and may raise issues of comparability across companies.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Detailed Exemptions: What Changes Until 2027<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For companies beginning ESG reporting in <strong>2025<\/strong>, certain key disclosures can be <strong>temporarily omitted<\/strong>, particularly for those with an <strong>average headcount of 750 employees or fewer<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Environmental Information Exemptions (ESRS \u201cE\u201d)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Scope 3 emissions and total GHG emissions<\/strong> (ESRS E1-6)<\/li>\n\n\n\n<li><strong>Anticipated financial effects of climate risks<\/strong> (E1-9)<\/li>\n\n\n\n<li><strong>Pollution and marine resources disclosures<\/strong> (E2-6, E3-5)<\/li>\n\n\n\n<li><strong>Biodiversity and ecosystems<\/strong> (E4 and E4-6)<\/li>\n\n\n\n<li><strong>Resource use and circular economy<\/strong> (E5-6)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Social Information Exemptions (ESRS \u201cS\u201d)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Characteristics of non-employee workers<\/strong> (S1-7)<\/li>\n\n\n\n<li><strong>Collective bargaining and social dialogue<\/strong> (S1-8)<\/li>\n\n\n\n<li><strong>Social protection, disability, training, and well-being<\/strong> (S1-11 to S1-15)<\/li>\n\n\n\n<li><strong>Value chain social commitments<\/strong> (S2)<\/li>\n\n\n\n<li><strong>Community and consumer relations<\/strong> (S3, S4)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These exemptions generally apply for the <strong>first two years<\/strong> of reporting, and in many cases, up to <strong>three years<\/strong> for companies with \u2264750 employees.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Why Freeze These Disclosures?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Commission, requiring Wave 1 companies to report additional ESG data in 2025 and 2026 would be <strong>unreasonable<\/strong>, especially if many of them might later be <strong>exempted from CSRD obligations<\/strong> under future reforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, the <strong>ESRS framework is still under revision<\/strong>. Imposing requirements now that could soon change would risk inefficiencies, duplicate efforts, and unnecessary compliance costs.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Benefits and Challenges of the New Approach<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Benefits for Companies<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower short-term compliance costs<\/li>\n\n\n\n<li>More time to prepare for a definitive ESRS framework<\/li>\n\n\n\n<li>Avoids investing in data that may soon become irrelevant<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Challenges to Monitor<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loss of consistency in ESG reporting<\/strong> across similar companies<\/li>\n\n\n\n<li><strong>Difficulties in comparability and benchmarking<\/strong> between firms above and below the 750-employee threshold<\/li>\n\n\n\n<li><strong>Regulatory uncertainty<\/strong> until the final CSRD revision is published<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">When Does It Apply?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The new Delegated Act will apply from <strong>January 1, 2025<\/strong>, for financial years beginning on or after that date. In many cases, the exemptions will extend through <strong>2027<\/strong>, pending the release of a revised and simplified set of ESRS.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This <strong>draft Delegated Act<\/strong> represents a <strong>pragmatic shift<\/strong> in the rollout of the CSRD. The message is clear: <strong>simplify now to regulate better later<\/strong>. Still, companies must remain vigilant: <strong>2025 marks only the beginning<\/strong> of an evolving process that will demand adaptability, strategic planning, and close monitoring of the regulatory landscape.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sources:<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/1747895620538-1.pdf\" type=\"application\/pdf\" style=\"width:100%;height:200px\" aria-label=\"Embed of 1747895620538.\"><\/object><a id=\"wp-block-file--media-c1f4252b-be24-4a9b-9cb7-45d48877572e\" href=\"https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/1747895620538-1.pdf\">1747895620538<\/a><a href=\"https:\/\/axevera.com\/wp-content\/uploads\/2025\/05\/1747895620538-1.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-c1f4252b-be24-4a9b-9cb7-45d48877572e\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">AI &#8211; generated image.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The EU&#8217;s draft CSRD Delegated Act proposes ESG reporting exemptions for Wave 1 companies, easing Scope 3 and social data requirements until 2027.<\/p>\n","protected":false},"author":5,"featured_media":13974,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[525,1],"tags":[],"yst_prominent_words":[],"class_list":["post-13977","post","type-post","status-publish","format-standard","has-post-thumbnail","category-en","category-non-categorizzato"],"_links":{"self":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/13977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/comments?post=13977"}],"version-history":[{"count":2,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/13977\/revisions"}],"predecessor-version":[{"id":13987,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/13977\/revisions\/13987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media\/13974"}],"wp:attachment":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media?parent=13977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/categories?post=13977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/tags?post=13977"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=13977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}