The "Quick Fix" Regulation is a Positive Signal for Businesses

“Today’s decision on the “Quick Fix” Regulation is an important signal for all companies in the first reporting wave. They will receive noticeable relief until the planned simplifications of the CSRD take effect. The fact that larger companies with more than 750 employees will now also benefit from the transitional rules is a step in the right direction toward a proportionate reporting standard. What is essential now is that the European Commission works quickly to achieve a permanent simplification for all companies subject to reporting obligations.”

Under current rules, companies that are already reporting for the 2024 financial year may omit certain information, such as the expected financial impacts of specific sustainability-related risks. The “Quick Fix” amendment, which is intended to apply from the 2025 financial year onward, will allow them to omit the same information for financial years 2025 and 2026 as well.

In addition, for companies in the first reporting wave with more than 750 employees, the same transitional provisions will largely apply in 2025 and 2026 as currently apply to companies with up to 750 employees.

Unless the European Parliament or the Council request an extension of the review period or reject the “Quick Fix,” it is expected to enter into force by the end of the year.