BITCI Regulatory Round-Up – Q1 2025 Edition
On a quarterly basis, Business in the Community Ireland (BITCI) shares the latest developments in EU sustainability regulations. Topics covered in this series of updates throughout 2025 include sustainability reporting, environmental and human rights due diligence, green taxonomy, nature and biodiversity, greenwashing, and forced labour. Our aim is to provide news, stakeholder insights, and useful resources and guidance.
In this edition, the focus remains on sustainability reporting while highlighting the perspectives and proposals of various stakeholders regarding the Omnibus simplification proposal.
Regulatory Outlook
The new year begins without any substantive regulatory developments at EU level. Instead, attention turns to the upcoming EU Omnibus review of Green Deal directives, scheduled for announcement on 26 February. All indications suggest that significant amendments will be introduced, potentially reducing the reporting burden for some businesses in the medium term. Questions also remain regarding the scope of mandatory reporting under the social pillar—particularly in light of the new US administration’s rejection of key corporate social responsibility principles.
At BITCI, we remain optimistic about the ability of Green Deal instruments—including the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD)—to drive meaningful change. In 2025, maximising the utility of compliance efforts will remain a key theme for us. Look out for our first half-year programme of CSRD-related support sessions for reporting member companies below. We also know that the intent and integrity of our members’ efforts to build a more socially inclusive Ireland can withstand any politicised “culture wars”.
Nonetheless, there is uncertainty in the air; please reach out to the BITCI team if there are any concerns you would like to discuss directly or with counterparts in the wider network.
Half-Year Programme of CSRD-Related Support Sessions
- Session #1: EU Green Deal Omnibus update – responses, concerns and practical implications for sustainability reporting.
- Session #2: Affected communities – how to make sense of ESRS S3 for your business?
- Session #3: CSRD in practice – learnings from the first CSRD-compliant sustainability statements.
- Session #4: Sustainability assurance – interpretation of requirements.
For more information, contact Neela Couture, Sustainability Adviser, ncouture@bitc.ie.
News & Resources
The Future of ESG Regulation
On 26 February, the European Commission will present its Omnibus, a legislative initiative to simplify sustainability regulatory obligations established by the European Union, including the CSRD.
Many voices are being heard, such as the German and French governments, which have advocated for delaying CSRD and CSDDD implementation and significantly reducing disclosure requirements. Meanwhile groups from big business, academia and standard-setting bodies have called on the EU not to water down ESG regulations, and proposed ways to simplify requirements without reducing ambitions
At the World Economic Forum in Davos, Ursula von der Leyen, President of the European Commission, flagged a “far-reaching simplification of our sustainable finance and due diligence rules”. In her speech, she reiterated that climate change remains a firm priority and that “Europe will stay the course” on the Paris Agreement.
How does the European Commission intend to reconcile the importance of the ESG agenda with pressing stakeholders’ expectations for simplification? We will know more on 26 February.
What is clear is that the prevailing uncertainty is not helping companies define and invest in ambitious sustainability trajectories.
Sustainability Assurance
In January, the Committee of European Auditing Oversight Bodies (CEAOB) and the Association of Chartered Certified Accountants (ACCA) shared their views on the growing market for sustainability assurance, which requires standards and appropriate training to ensure consistent and high-quality assurance.
Accountancy Europe, the network for accountancy bodies in Europe, has published Fundamentals to assurance on sustainability reporting, a series of answers to frequently asked questions. Covering topics such as materiality from an assurance perspective and the scope of an assurance engagement under CSRD, this publication helps demystify sustainability reporting assurance.
Corporate Sustainability Reporting Directive (CSRD)
Ireland
The Department of Enterprise, Trade and Employment (DETE) issued a series of FAQs in November related to the scope of the CSRD directive, considerations for consolidated reporting, and value chain reporting requirements.
EU Member States
EU member states had until 6 July 2024 to transpose the CSRD into national law. PwC Global and Accountancy Europe regularly update their respective CSRD transposition trackers (last updated in November for PwC and December for Accountancy Europe), providing an overview of how different jurisdictions are approaching transposition and discretionary areas.
European Sustainability Reporting Standards (ESRS)
Implementation Guidance
As part of their Q&A Platform, EFRAG have provided additional technical explanations focusing on ESRS E1 Climate Change and ESRS E4 Biodiversity and Ecosystems. These will soon be compiled together with the previous sets of explanations, bringing to 162 the total number of explanations provided in 2024.
Some edits and adjustments have been made to EFRAG’s List of Datapoints based on feedback from early adopters. The final list of datapoints on Excel will be updated in Q1 2025, but a 2-page addendum explaining the technical adjustments is now available.
SME Standards
EFRAG has sent technical advice to the European Commission on the voluntary sustainability reporting standard for non-listed SMEs (VSME). This standard aims to help SMEs capture all sustainability-related information required by their customers, replacing multiple, heterogeneous questionnaires. In 2025, EFRAG will develop learning materials, tools and implementation guidance.
Meanwhile, EFRAG is working on a streamlined version of the mandatory standard for listed SMEs (LSME), expected in early 2025. The LSME will take effect from FY 2026 with an optional two-year opt-out and will be adopted as a delegated act by the European Commission.
Interoperability
In a recent paper, EFRAG highlighted the synergies between the ESRS and the voluntary EU Eco-Management and Audit Scheme (EMAS). The focus is on environmental performance, clarifying the benefits of the EMAS management system approach in supporting compliance with ESRS disclosure requirements.
CDP and EFRAG announced extensive interoperability between ESRS E1 and CDP disclosures. A comprehensive mapping of both standards’ requirements will be published in Q1 2025.
Digitisation
Public Consultation
The European Securities and Markets Authority (ESMA) has launched a consultation on applying the European Single Electronic Format (ESEF) to sustainability reporting. Open for feedback until 31 March 2025, ESMA plans to submit final technical standards to the European Commission by the end of 2025.
The proposals include technical tagging rules for sustainability statements based on EFRAG’s preliminary work to produce a digital taxonomy for the first ESRS set. They also outline implementation timelines starting in FY 2026 or 2027 for large public interest entities and parent undertakings, with phased implementation.
Along with the European Single Access Point (ESAP) project, digitising sustainability reporting aims to facilitate access to comparable financial and sustainability information for investors and other stakeholders.
