What does the new European legislation mean for your business? 

With the introduction of the Corporate Sustainability Reporting Directive (CSRD), the European Union significantly expands its sustainability reporting obligations. The CSRD replaces the existing Non-Financial Reporting Directive (NFRD) and aims to improve corporate transparency on environmental, social, and governance (ESG) matters. Under the CSRD, companies must give non-financial performance the same priority as financial results.

Who will be subject to CSRD? (Revised 2026 - Sustainability Omnibus Update)

Following the entry into force of the Sustainability Omnibus Directive (EU 2026/470), the thresholds for mandatory reporting have been significantly raised to reduce the administrative burden on businesses. 

The CSRD now primarily focusses on very large enterprises. A company is subject to the reporting requirements if it meets the following criteria.

• Large companies with more than 1000 employees
• Companies with net revenue exceeding €450 million

Companies that fall below these thresholds are now largely exempt from the full CSRD requirements, as the EU has shifted its focus to the "most impactful" organizations. 

Significant Simplification: ESRS & Data Points

It is not just the thresholds that have changed; the reporting itself has been streamlined: 

• ESRS simplified: The European Sustainability Reporting Standards have been drastically cut. 
• 60-70% reduction: The number of mandatory data points has been reduced by approximately 60-70%, focusing only on the most essential material information.