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.
Companies in scope
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).
Reporting scope and criteria
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