Carbon news roundup for March 2025

European Parliament approves ‘Stop the clock’ proposal to delay CSRD reporting

On April 3rd, the EU Commission voted to postpone CSRD compliance by two years for all companies, except for those in the first wave of CSRD (Corporate Sustainability Reporting Directive). 

Here’s the breakdown of the new reporting timelines:

• First wave: Companies that were already reporting under the NFRD (i.e., large listed companies and public-interest entities with over 500 employees) still need to report according to CSRD as planned for FY2024 (in 2025).
• Second wave: Large companies with more than 250 employees that previously needed to report in 2026 (FY 2025) will now report in 2028 (FY 2027)
• Third wave: Listed SMEs that previously needed to report in 2027 (FY 2026) will now report in 2029 (FY 2028)

What does this mean for your business?

This extension will provide businesses with an additional two years before they need to report under the CSRD unless they are already part of the first wave. During these two years, the scope of the regulations may change, potentially removing the necessity for some companies to report at all. However, the second proposal under the EU Omnibus Simplification Package (which addresses changes to the directive, including limiting the scope to companies with over 1,000 employees) is still under discussion and will take time to finalize.

If you have already started your preparatory work, we recommend that you continue with it. The reporting obligations of the CSRD provide you with an excellent framework to systematically assess the climate-related risks and opportunities for your business. Use this extra time to optimize your reporting processes and to set your business up for long-term resilience.

Moreover, sustainability reporting remains crucial for demonstrating your commitment to stakeholders through actual data on your sustainability efforts, and the ESRS continue to serve as the main framework for companies to follow.

EU Commission asks EFRAG to fast-track development of simplified CSRD sustainability reporting standards

The European Commission has instructed EFRAG to fast-track the development of simplified European Sustainability Reporting Standards (ESRS) under the CSRD, aiming to reduce reporting burdens while maintaining alignment with global standards.

This means that EFRAG must submit technical advice by October 31, 2025, potentially enabling revised standards for FY2026 reporting.

The update will focus on fewer mandatory datapoints, clearer materiality guidance, simplified structure, and improved interoperability.

What does this mean for your business?

This is connected to Omnibus but the ESRS simpliciation can only be adopted if the second Omnibus proposal is approved. The reason that the Commission wants EFRAG to begin this work now is to avoid delays if the legal framework is approved. The most important thing businesses can do now is to stay tuned to the latest developments – this applies to both Omnibus and the ESRS work. The Omnibus decides if simplification happens, while EFRAG’s work shows what revised standards might look like.

SBTi launches draft Corporate Net-Zero Standard V2 for consultation

The Science Based Targets initiative (SBTi) has released a draft of its updated Corporate Net-Zero Standard (V2) for public consultation.

The revised framework aims to accelerate corporate decarbonization by:

• Improving approaches to scope 3 emissions
• Incentivizing climate finance and carbon removals
• Simplifying requirements for SMEs and developing markets
• Enhancing tracking and communication of progress

Some of the key innovations include flexible options for scope 3 targets, formal recognition of Beyond Value Chain Mitigation (BVCM), and clearer guidance on scope 1 and 2 decarbonization.

What does this mean for your business?

The SBTi draft gives important hints as to what businesses should be prepared to focus on in terms of their sustainability efforts. Enhanced scope 3 flexibility, new validation models, and increased demand for progress tracking may shift how companies approach their targets.

EU launches strategy to decarbonize steel and metals industry

The European Commission has launched an Action Plan to strengthen and decarbonize the EU’s steel and metals industry.

The plan aims to reduce energy costs, prevent carbon leakage, expand recycling, and protect industrial capacity and jobs. It introduces measures to promote renewable energy use, enhance CBAM enforcement, encourage circularity, and support investment in low-carbon technologies.

One of the key focuses of the plan is to ensure the industry can be competitive at the same time as meeting climate targets.

What does this mean for your business?

This reinforces the growing pressure on heavy industries to decarbonize, supported by regulatory and financial tools. Companies in the steel and metals industry will need expert guidance to navigate these sector-specific requirements, especially with regards to scope 1 and 2 emissions, CBAM compliance, and tracking circularity impacts.