Slovak companies were granted a two-year postponement for the start of ESG reporting

The two-year postponement of mandatory ESG reporting now officially applies to Slovak companies as well. After approval by the National Council of the Slovak Republic, an amendment to the relevant law was published in July 2025 in the Collection of Laws, and this step postponed the obligation to collect and publish sustainability data by two years.

Slovak companies in the second and third waves, which were supposed to start reporting business sustainability data in 2026 (for 2025), will now only be required to do so in 2028. In Slovakia, this affects approximately 700 companies in the larger enterprise category. However, mandatory ESG reporting continues to apply unchanged to banks, insurance companies, and publicly traded companies, which represent only a few dozen entities in Slovakia.

What is changing for companies in terms of sustainability reporting

In February 2025, the European Commission presented a package of proposals known as "Omnibus", which aims to reduce the burden on companies in terms of sustainability reporting. The first part of this package, entitled "Stop the clock", was approved by the European Parliament on April 3, 2025, and entered into force on April 17, 2025. Member States were then required to implement the change into their legislation. In Slovakia, the parliament approved an indirect amendment to the Accounting Act as part of an amendment to the Securities Act.

Second-wave companies, which were required to report data for 2025 as early as next year, are granted a two-year deferral. They must therefore publish their first ESG report in 2028 for the 2027 financial year.

The Omnibus also narrows the range of companies that belong to this group:

• the basic condition is more than 1,000 employees;
• and then the company must meet one of the two criteria (turnover over EUR 50 million; assets over EUR 25 million).

This change is not yet reflected in Slovak legislation, but it is very likely to happen in the foreseeable future (Slovakia has time to amend its legislation until the end of the two-year grace period).

Similarly, the deadline for the third wave of companies, which includes small and medium-sized enterprises listed on regulated EU markets, has been postponed by two years, from 2027 to 2029. The decision to postpone the deadlines was made as part of the European Commission's efforts to reduce the administrative burden on companies. It was also a response to companies' requests for more time to prepare high-quality reporting.

During the two-year postponement, negotiations will take place at the European Union level on the precise adjustment of the CSRD requirements, and these changes will then be transposed into the laws of the member states.

Recommendations for companies that have already invested in preparations

Companies that have been gradually preparing for ESG reporting since the summer of 2023 have already invested considerable funds in preparing for sustainability reporting. However, these resources are not lost. Those who have already started collecting data, setting up internal systems, and preparing for mandatory audits will be in a much better position in two years' time. Even though the boundaries and conditions may still change and some companies may ultimately be exempt from mandatory reporting, it will still be necessary to provide this information to parent companies or business partners.

Nevertheless, companies that will not be required to report, should make good use of the resources they have already invested. ESG data play a key role in business relationships. For example, banks require them when approving loans, customers are interested in them when selecting suppliers, and investors take them into account in their decisions. This is another reason why voluntary reporting according to the standard for small and medium-sized enterprises can be a way to create a competitive advantage.

Some companies must continue to report on mandatory basis

Mandatory sustainability reporting continues to apply to banks (except for the National Bank of Slovakia), insurance companies, reinsurance companies, and companies that have issued securities traded on the stock exchange. These entities have already started with classic CSRD reporting and were required to publish their reports for 2024 at the beginning of 2025. In Slovakia, there are approximately 20 such entities, which represents a minimum of the total number of companies in the country.