Proposed postponement of including sustainability information into governance report for companies
Today, the Government approved the draft Law on Reporting of Companies and Group of Companies and draft Law on Securities prepared by the Ministry of Finance which propose to postpone by 2 years the requirement for certain companies to include sustainability information in their governance reports. This amendment would allow companies not to include sustainability information into the governance report for two years until there is a consensus at EU level on which EU companies should be required to include this information and how the requirements for preparation of sustainability information are simplified.
It is envisaged that large companies (public and private limited liability companies, state owned and municipal companies, parent companies of large groups of companies, collective or limited partnerships, whose all full members are public and private limited liability companies) should include sustainability information into their governance reports not for 2025, as is currently the case, but for 2027. Medium-sized and small listed companies should be required to include this information into their governance reports for the first time, not for 2026, but for 2028, accordingly. It is estimated that more than 200 companies would be affected by these changes.
In order to provide companies with clarity about future changes as early as possible, the draft Laws are scheduled to be adopted at this Spring session of the Seimas.
The proposed legislative amendments transpose the Stop-the-clock directive, adopted on 16 April 2025, which postpones the deadlines set out in the Directive as regards corporate sustainability reporting for the inclusion of sustainability information in the governance reports. The Stop-the-clock directive forms part of the Omnibus I package which came into force on 26 February 2025. Omnibus I aims to significantly reduce the administrative burden on EU businesses in order to increase their competitiveness by focusing on sustainable growth in the EU economy.
Last updated: 02-06-2025
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