The Netherlands mulls retroactive CSRD rules that protect voluntary reporters
Dutch finance minister asks for vote to be further delayed in order to integrate proposal, along with Omnibus I changes
The Dutch minister of finance wants to introduce provisions to help companies comply with retroactive requirements under the EU Corporate Sustainability Reporting Directive (CSRD).
The Netherlands has missed the deadline for transposing the CSRD into national law, but is still obliged to mandate disclosures starting from the 2024 financial year, because that’s what the Directive states.
The current, long-standing proposal would therefore require retroactive compliance, in order to ensure the Dutch government isn’t penalised for falling foul of EU rules.
It has been met with criticism for being overly burdensome, but also because it may be difficult for issuers to generate new data for past years.
They could also face legal dilemmas if disclosing historical statements or ambitions that they know now not to be accurate.
In addition, it is unclear how they would report for the coming year, before The Netherlands has finalised its version of the CSRD requirements.
But Eelco Heinen, the Dutch Minister of Finance, has today written to the House of Representatives doubling down on the retroactive requirement.
To quell concerns, he said the government plans to introduce a “remedial provision” [translated from Dutch] that means companies that have reported voluntarily under CSRD in 2024 and 2025, using reasonable efforts and existing European standards, will be deemed compliant.
If CSRD isn’t transposed by October 1st, the rule will apply to the 2026 reporting year, too.
Most large Dutch companies have reported voluntarily.
The proposal was scheduled to be discussed by Dutch Parliament on March 2nd, with a vote to follow shortly afterwards.
However, the letter requests a delay, in part to give national lawmakers a chance to incorporate the new provisions; but also to allow for the inclusion of the EU’s planned amendments to CSRD, made via an ‘Omnibus’.