Ireland has amended its Corporate Sustainability Reporting Directive (CSRD) Regulations, integrating updates into Part 28 of the Companies Act 2014. These adjustments aim to enhance transparency in corporate sustainability disclosures and refine Ireland’s alignment with EU reporting standards under the CSRD. 

Key amendments address two main issues: Artificial Consolidation and Subsidiary Exemptions. The updated regulations now permit EU subsidiaries of a non-EU parent company to use “artificial consolidation” in sustainability reporting immediately, rather than waiting until 2028. This means that an in-scope EU subsidiary can consolidate its report with other EU subsidiaries under the same non-EU parent, creating a unified sustainability report across the group. 

The second amendment revises exemption criteria for group subsidiaries. Previously, the regulations restricted all large public-interest entities from exemption eligibility. The revised rule now limits this restriction only to large companies listed on an EU-regulated market, allowing other large subsidiaries greater flexibility in fulfilling their reporting requirements. 

These amendments mark Ireland’s effort to facilitate more comprehensive and efficient sustainability reporting across corporate groups, supporting both transparency and alignment with broader EU standards. The Department of Enterprise, Trade, and Employment plans to release FAQs to address further technical aspects of the updated CSRD regulations, providing clarity for companies in implementing their ESG and carbon-neutral strategy reporting requirements. 

Sources:  

https://www.mondaq.com/ireland/corporate-and-company-law/1542606/irish-csrd-obligations-amended 

https://www.walkersglobal.com/en/Insights/2024/09/Corporate-sustainability-reporting-directive-update 

https://www.arthurcox.com/insights/irish-csrd-regulations-amended/ 

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