On 3 April 2025, the European Parliament voted to postpone the next waves of CSRD (Corporate Sustainability Reporting Directive) requirements by two years. The decision is part of the EU’s broader push to reduce regulatory burdens and boost competitiveness – a move that will have a significant impact on businesses across Europe and the Nordics.
But what does this actually mean for HR and sustainability teams in our region? And how should you respond?
A quick recap and what’s changing
CSRD was introduced to raise the bar on sustainability reporting and make ESG disclosures more consistent, comparable and meaningful. It’s a key pillar in the EU’s Green Deal and has already started rolling out – with the first group of large, listed companies reporting from 2025.
Originally, this reporting obligation would expand in stages to include more companies in 2026 and 2027 (known as waves two and three). But under the new proposal, those waves have now been pushed back by two years. This means:
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Wave 2 (companies that were to report in 2026) will now report from 2028
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Wave 3 (companies that were to report in 2027) will now report from 2029
For the companies already reporting in 2025 (Wave 1), the obligations remain unchanged – for now.
This change comes as part of a wider “Sustainability Simplification” package from the European Commission. The goal? Cut the administrative burden for businesses by 25% and save companies up to €37.5 billion in reporting costs over time.
Why this matters – and not just for sustainability teams
If you're an HR leader or business decision-maker in the Nordics, this delay gives you breathing room – but not a free pass.
While the regulatory deadlines may have shifted, the demand for transparent, high-quality sustainability information hasn’t. Investors, customers, employees, and partners still expect organisations to be accountable and forward-looking when it comes to how they manage their social and environmental impact.
As we outlined in our CSRD resource hub, sustainability reporting isn’t just about compliance – it’s an opportunity to show leadership, align internal processes, and build long-term trust.
What does this mean for your company?
Here’s how this decision may affect your planning and priorities:
1. If you were preparing for Wave 2 or 3:
You now have more time to build your reporting processes, refine your data collection, and upskill your team. But don’t delay your preparations – building a solid foundation takes time, especially if your organisation is new to structured ESG reporting.
2. If you’re in Wave 1:
No change. You still need to be ready to report in 2025 for the financial year 2024. Make sure your dual materiality analysis is underway, and that you’re aligning with the European Sustainability Reporting Standards (ESRS).
3. If you’re below the threshold but still want to lead:
The European Commission is pushing for a voluntary sustainability reporting standard (VSME) aimed at smaller companies. This could be a valuable tool to show commitment and stay ahead of future regulation. Remember, many Nordic companies are already reporting voluntarily due to market expectations.
HR’s role in sustainability reporting
HR teams play a crucial role in the success of sustainability strategies. From collecting reliable employee data to tracking diversity and inclusion efforts, compensation transparency, and competence development – much of the information required by CSRD sits within HR’s domain.
Modules like HR Master Data, Competence, Compensation Management, and CatalystOne Populum can help you streamline reporting, track progress, and surface insights that matter.
With more time now on your side, this is a great moment to:
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Review your current HR data landscape
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Identify gaps or areas for improvement
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Align your people strategy with your organisation’s broader ESG goals
Final thoughts
While this postponement offers relief, it also presents an opportunity.
Use this time to embed sustainability into your business DNA – not because you have to, but because it makes your organisation stronger, more resilient, and more attractive to both talent and investors.
The green transition is still happening. And the companies that take it seriously – with or without a legal requirement – are the ones that will lead the way.
