Chambers Ireland has welcomed the EU's decision to defer reporting requirements under its Corporate Sustainability Reporting Directive (CSRD) for two years.

The business representative group's chief executive said the move is "a step in the right direction" that will allow companies to plan ahead, providing them with certainty as they navigate greater reporting requirements.

CSRD is the EU’s response to the global reframing of company sustainability reporting, including environmental, social and governance areas covered under the European Green Deal and EU Action Plan for Financing Sustainable Growth.

The European parliament voted in April to postponed the application of the CRSD under the "stop the clock" directive.

Companies that had been due to report from next year ('wave 2' companies) and from 2027 ('wave 3' companies) will not have to report on their corporate sustainability regimes until 2028 and 2029, respectively.

“Today’s announcement to adopt the Stop-the-Clock Directive and defer reporting requirements is a step in the right direction. This will allow companies to plan ahead and provide certainty as they navigate ever-increasing reporting requirements," said Ian Talbot, chief executive at Chambers Ireland.

"Reducing the regulatory burden is a core priority for companies with significant impacts on their financial and administrative resources.

"We must learn from over burdensome legislative outcomes of the past and ensure that new policy is drafted based on rigorous consultation and considers the capacity of smaller businesses to comply with new requirements.

"As negotiations continue at EU level on the Commission’s Omnibus proposal, we are hoping for practical and proportionate rules to removed is proportionate complexity.”

(Pic: Supplied)