Business Advancements Support Green Journalism: How Companies Achieve Environmental Improvements despite EU Hurdles

The European Union's decision to delay sustainability reporting requirements has provided a valuable opportunity for businesses to improve their sustainability data and strategic alignment, according to a recent survey by Sphera.

The delay, prompted by the EU's "stop-the-clock" directive published on April 16, 2025, and effective from April 17, 2025, allows companies in the second and third waves of the Corporate Sustainability Reporting Directive (CSRD) more time to comply. This means that companies now have until financial years starting in 2027 or 2028 to meet the new reporting standards.

The top priority during the delay for 60% of surveyed leaders is to improve the quality of their sustainability data. This shift in focus is from reactive compliance to proactive sustainability management, setting the stage for more meaningful, integrated sustainability performance in the years ahead.

The survey also indicates a focus on deepening supply chain visibility. In fact, 28% of businesses are using the extra time to invest in supply chain sustainability visibility, with some viewing the delays to reporting requirements as an opportunity to realign sustainability and supply chain goals.

The EU has made changes to the European Sustainability Reporting Standards (ESRS) to reduce reporting burdens and introduce scaled-back requirements for smaller businesses. EFRAG reduced the number of required disclosures by two-thirds in its July update.

As reporting becomes embedded in core business functions, the organizations that succeed will be those that use this moment to lay the foundations for more resilient, strategically aligned operations. Companies embracing proactive, thorough sustainability reporting gain a competitive advantage.

Moreover, regulatory requirements such as CSRD are increasingly requested and used by investors and customers to make informed decisions. The delays have offered companies space to elevate sustainability data as a strategic asset.

However, the delays have also caused frustration for many companies due to a lack of clarity about what's next or open discussion about the current thresholds for companies to comply. The European Central Bank criticized the ESRS amendments in a mid-August statement.

Despite these challenges, the survey results suggest that over half of the surveyed EU business leaders view the delays as a chance to improve the quality of their sustainability data. Companies are investing in building solid climate accounting structures, climate transition plans, and sustainability strategy development and implementation.

In conclusion, the EU's decision to delay sustainability reporting requirements offers businesses a unique opportunity to improve their sustainability practices and data, set the stage for proactive sustainability management, and gain a competitive advantage. As the EU continues to promote climate action and sustainability through initiatives like the Green Deal, the Corporate Sustainability Reporting Directive, and the EU Taxonomy, businesses that embrace these changes will be well-positioned for success in the years ahead.

Business Advancements Support Green Journalism: How Companies Achieve Environmental Improvements despite EU Hurdles