Companies in scope
- Large undertakings revised to companies with >1000 employees (raised from 250 employees) AND EITHER turnover > €50 million OR balance sheet >€25 million.
- The threshold for non-EU parent companies reporting has been raised from €150 million to €450 million in EU turnover.
- Companies in the value chain of CSRD-regulated companies will be able to leverage voluntary guidance based on EFRAG’s published standards for SMEs.
Reporting scope and criteria
- Substantial reduction of the number of data points will be announced in the coming months.
- Sector-specific standards will be eliminated.
- Principle of double materiality will be maintained (previous versions suggested this may go away).
- The Commission will publish targeted assurance guidance.
- Proposal to move to reasonable assurance by October 2028 removed, keeping review to limited assurance.
Assurance level
- ‘Stop the clock’ – the Commission is proposing a 2 year-delay for large undertakings that have not yet started implementing CSRD and for listed SMEs (Waves 2 and 3). In effect, it means companies planning to report in 2026 and 2027 on their previous fiscal year would be able to report in 2028 and 2029.
- The reporting timeline has not been delayed for third-country undertakings.
Timeline