Part 28 of the Companies Act 2014, as inserted by the European Union (Corporate Sustainability Reporting) Regulations 2024 (the  CSRD Regulations) has been amended by the European Union (Corporate Sustainability Reporting) (No. 2) Regulations 2024.  

The CSRD Regulations, transpose the Corporate Sustainability Reporting Directive (CSRD) into Irish law, amending the Companies Act 2014 and the Irish Transparency Regulations 2007.  

As set out in our recent update some anomalies had been identified in the CSRD Regulations.  The amendments address two of these issues: 

• Artificial Consolidation: The transitional measure, permitting an in-scope EU subsidiary to prepare a “consolidated sustainability report” including all in-scope EU subsidiaries which share a common non-EU parent, was initially only available from financial years beginning on or after 1 January 2028.  The amended provision now provides that “artificial consolidation” is available with immediate effect. 

• Exemptions for Subsidiaries: The exemption for group subsidiaries was initially more restrictive than provided under the CSRD and restricted all large public-interest entities from relying on this exemption.  This has been amended, such that only large companies listed on an EU regulated market are precluded from availing of the subsidiary exemption. 

The Department of Enterprise Trade and Employment confirmed that it will publish FAQ in the coming weeks addressing some further technical queries that it has received on the CSRD Regulations.