OVERVIEW OF THE SUSTAINABILITY REPORTING REQUIREMENTS INTRODUCED BY THE CSRD
The CSRD (Corporate Sustainability Reporting Directive – Directive (EU) 2022/2464) has introduced new sustainability reporting requirements for certain undertakings by way of amendments to the Accounting Directive (Directive 2013/34/EU), Audit Directive (Directive 2006/43/EC), Audit Regulation (Regulation (EU) No 537/2014), and Transparency Directive (Directive 2004/109/EC). Overall (16), these sustainability reporting requirements oblige certain undertakings to publish sustainability information, which must be prepared in accordance with specific sustainability reporting standards and, where applicable, comply with a digital format. This sustainability information is subject to an assurance requirement and must be published together with the related assurance report. Overall, these sustainability reporting requirements apply to undertakings governed by the law of a Member State (17) that are: large undertakings; SMEs (excluding micro-undertakings) with transferable securities admitted to trading on an EU regulated market; and parent undertakings of large groups. They also apply to undertakings governed by the law of a third country that have either transferable securities admitted to trading on an EU regulated market (excluding micro-undertakings) or that have business in the territory of the Union above certain thresholds (18). The rules to determine the size of an undertaking and the scope of consolidation for sustainability reporting purposes rely on the existing rules for financial reporting purposes, which are set out in the national measures transposing the pre-existing Accounting Directive. The Accounting Directive thresholds for the determination of the size of each category of undertaking are indicated in the box within the ‘ Flowchart to identify the applicable sustainability reporting requirements and the application date ’ below. The date of application of these sustainability reporting requirements varies depending on the specific reporting requirement and on the category of undertaking. The specific application date for each requirement is indicated in the paragraph ‘ Sustainability requirements for reporting undertakings ’ below. As these requirements are introduced by way of a Directive, the specific rules that apply to undertakings are the ones set out in the national legislation transposing the Accounting Directive as amended by the CSRD (19), as well as by Commission Delegated Directive (EU) 2023/2775 (20) that has adjusted the size criteria applicable to the definition of micro, small, medium-sized and large undertakings or groups for the effects of inflation, therefore reducing the number of undertakings subject to sustainability and, to a certain extent, financial reporting requirements. The CSRD does not regulate the voluntary disclosure of sustainability information by undertakings that do not fall under the scope of CSRD (for instance, SMEs without securities admitted to trading on an EU regulated market), which is not subject to mandatory requirements at Union level.
Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.