There were a number of anomalies in these regulations which caused concern and challenges for businesses implementing the CSRD. The Institute, along with other professional bodies and law firms, made numerous representations to the Department of Enterprise, Tourism and Employment outlining the amendments that were required to give clarity on the implementation of the CSRD.
The ‘wave 1’ reporters which were subject to the CSRD published their first sustainability statements earlier this year. Just as they were being published the European Commission published their ‘omnibus simplification package’ the purpose of which is to simplify sustainability reporting, and it also included a proposal to ‘stop the clock’ by delaying the commencement of reporting obligations by two years for the majority of companies.
The current state of play
Minister Burke recently published statutory instrument S.I. 309/2025, European Union (Corporate Sustainability Reporting) Regulations 2025 to transpose these changes into Irish law.
A summary of the changes are as follows:
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‘Stop the clock’: The S.I. transposes this EU Directive into Irish law and delays the application of the CSRD for the majority of Irish companies (wave 2 and wave 3) by two years. Large Irish incorporated entities will publish their first report in 2028 based on data for the 2027 financial year. SMEs with securities listed on an EU regulated market, small and non-complex institutions, captive insurance and reinsurance undertakings will issue their first reports in 2029 based on data for the 2028 financial year.
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Definition of net turnover: The definition of ‘net turnover’, which is one of the thresholds for determining if a company is in scope for CSRD reporting, has been amended. The initial definition of turnover was broader in scope and for companies whose ordinary activities included the making or holding of investments, the gross revenue derived from such activities. Therefore, there were a number of companies, primarily in the funds sector and Special Purpose Vehicles, which were captured which may not otherwise have fallen within scope of the CSRD. The revised definition aligns more closely with the definition of ‘net turnover’ under the EU Accounting Directive.
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Ineligible entities: Under the original S.I. relating to the CSRD, there was confusion in Ireland regarding ‘ineligible entities’ and if they were potentially in scope for CSRD reporting irrespective of their size. The revised regulations expressly exclude these from scope and ‘ineligible entities’ are only in scope for the CSRD if they meet the CSRD thresholds.
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Subsidiary exemptions: There was uncertainty under the original transposition as to whether or not an Irish subsidiary could claim a subsidiary exemption if its sustainability information was included in the consolidated report of an EU parent company. In the revised regulations the provisions on subsidiary exemptions have been expanded, consistent with the CSRD, so that an Irish in-scope company may be exempt from preparing its own sustainability report where the information is included in the report of an EU parent, drawn up in accordance with the consolidated sustainability reporting obligations of the EU Accounting Directive, as amended by the CSRD.
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Ultimate parent company reporting: There was, in the initial CSRD regulations, the potential that all non-EEA parent companies of certain Irish companies had to prepare a sustainability report, and not just the ‘ultimate parent company’. The revised regulations have provided clarification on this matter and there is a new definition of ‘ultimate parent company’, and only that company now must prepare a report. The timeframe has not been amended by the revised regulations, and reporting obligations in respect of non-EEA undertakings apply beginning on or after 1 January 2028.
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