We estimate there are about 250 Irish companies who will be in scope for CSRD reporting for their 2027 financial year*.
From what we’re seeing in the marketplace, a lot of companies downed tools in this area after the changes at EU level. A number appear to have paused work entirely after postponement, but the reality is many will still have a significant amount to do and the timeline is tighter than people think.
We anticipate that some firms will face significant challenges in establishing the necessary governance frameworks, systems, and ESG data collection processes. They also face real compliance, enforcement and reputational risks if they leave preparations too late.
There is limited time for companies to ensure they are fully prepared and organized.
The first thing they need to do is assess whether they are actually in scope or not, which is not a straightforward exercise. The likelihood of a further extension is limited given that an extension was already granted last year.
They then need to put in place a system to gather the required data on your sustainability performance, again this is not straightforward.
These two things are the key factors as to why firms may face a scramble.
More generally, for many companies, there may be value in voluntary compliance with the rules even if they are not required to do so.
This is because sustainability performance increasingly is helping to drive business wins. Lenders, customers and procurement processes are increasingly demanding this information regardless of what is happening at a regulatory or legislative level.
*Note: This is financial years beginning 1 Jan 2027 or after.
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