EU carbon rules / Regulations / CSRD Corporate Sustainability Reporting Directive
In force Directive Sustainability reporting & due diligence
CSRD Corporate Sustainability Reporting Directive
Scope and thresholds narrowed by 2026/470 (Omnibus I); applies in stages
- Reference
- Directive (EU) 2022/2464
- Key date
- phased application
- Applies to
- Large and listed companies in Europe (transmitted to non-EU suppliers through the supply chain)
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Who the regulation applies to
This regulation applies to:
- (Condition) Large undertakings exceeding EUR 450 000 000 in net turnover at the balance sheet date and more than 1 000 average employees during the financial year (including insurance undertakings and credit institutions, irrespective of their legal form) must disclose sustainability information in the management report (Article 19a of Directive 2013/34/EU)
- (Condition) Large parent undertakings meeting the above thresholds on a consolidated basis (net turnover exceeding EUR 450 000 000 and more than 1 000 average employees) must prepare consolidated sustainability reporting (Article 29a)
- (Condition) Third-country undertakings' EU subsidiaries (net turnover exceeding EUR 200 000 000) or EU branches (net turnover exceeding EUR 200 000 000) whose third-country parent has net turnover in the EU exceeding EUR 450 000 000 must publish group sustainability information (Article 40a)
- (Not applicable) Listed SMEs previously in scope (including small non-complex credit institutions, captive insurance and reinsurance undertakings, etc.) have been removed from the mandatory reporting scope
- (Not applicable) Micro-undertakings; subsidiaries included in the parent's consolidated report may be exempted
- (Not applicable) The European Financial Stability Facility (EFSF); financial products listed in Article 2(12), points (b) and (f), of Regulation (EU) 2019/2088
- (Condition) Member States may exempt undertakings below the above thresholds from reporting obligations for financial years 2025–2026
The thresholds set out in this entry are the current values as amended by Directive (EU) 2026/470 (Omnibus I): net turnover exceeding EUR 450 000 000 and more than 1 000 average employees (listed SMEs have been removed from scope). The Commission's summary page still uses the pre-amendment wording ‘large and listed undertakings’; the current law prevails. The phased application timetable was also adjusted by Directive (EU) 2025/794 (stop-the-clock).
The following provisions define its scope:
Article 1(3) — inserted Article 1(3) of Directive 2013/34/EU
3. The coordination measures prescribed by Articles 19a, 29a, 29d, 30 and 33, point (aa) of the second subparagraph of Article 34(1), Article 34(2) and (3) and Article 51 of this Directive shall also apply to the laws, regulations and administrative provisions of the Member States relating to the following undertakings regardless of their legal form, provided that those undertakings are large undertakings, or small and medium-sized undertakings, except micro undertakings, which are public-interest entities as defined in point (a) of point (1) of Article 2 of this Directive:
Article 1(4) — replaced Article 19a(1) of Directive 2013/34/EU
1. Large undertakings, and small and medium-sized undertakings, except micro undertakings, which are public-interest entities as defined in point (a) of point (1) of Article 2 shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.
Article 1(6) — replaced Article 29a(1) of Directive 2013/34/EU
1. Parent undertakings of a large group as referred to in Article 3(7) shall include in the consolidated management report information necessary to understand the group’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the group’s development, performance and position.
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What the regulation requires
| Duty | Trigger | Evidence | Timing |
Prepare sustainability reporting in accordance with ESRS
Include climate and other sustainability information in the management report and carry out a double materiality assessment. | Large undertakings / listed SMEs meeting the size thresholds (thresholds raised by 2026/470) | Sustainability statement, double materiality assessment, limited assurance verification | Phased by financial year; simplified ESRS from FY2027 |
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Key provisions
Amended Article 19a(1) — sustainability reporting
Large undertakings, and small and medium-sized undertakings, except micro undertakings, which are public-interest entities as defined in point (a) of point (1) of Article 2 shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.
Amended Article 19a(2)(a)(iii) — transition plan
the plans of the undertaking, including implementing actions and related financial and investment plans, to ensure that its business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1,5 °C in line with the Paris Agreement ... and the objective of achieving climate neutrality by 2050 as established in Regulation (EU) 2021/1119 ... and, where relevant, the exposure of the undertaking to coal-, oil- and gas-related activities;
Amended Article 19a(3) — value chain
Where applicable, the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s own operations and about its value chain, including its products and services, its business relationships and its supply chain.
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Industry dossiers covering this regulation