It is the EU law that requires large companies to put sustainability information in their management report and to have it assured. The reporting rules were amended in 2026 by Directive (EU) 2026/470, which raised the threshold and changed the value chain rules.
The corporate sustainability reporting rules sit in Directive 2013/34/EU, as amended by the Corporate Sustainability Reporting Directive, Directive (EU) 2022/2464. A company in scope must include information on its impacts on sustainability matters, and on how sustainability matters affect its development, performance and position, in its management report. The statement must be prepared under the European Sustainability Reporting Standards and must be covered by a limited assurance opinion. The rules also require taxonomy disclosures under Regulation (EU) 2020/852 and a single electronic reporting format.
What changed in 2026?
Directive (EU) 2026/470 amended the scope, the value chain rules, the omission conditions, the assurance provision and the third-country route. The threshold for financial years starting on or after 1 January 2027 is both more than EUR 450 million net turnover and more than 1,000 average employees. The listed SME wave is deleted. A value chain cap protects undertakings with no more than 1,000 employees.
Who is in scope after the amendment?
For financial years starting on or after 1 January 2027, an undertaking or group that exceeds both figures at the balance sheet date. For financial years from 2024 to 2026, the transitional population is public-interest entities above 500 employees, with a Member State option to exempt companies below either the EUR 450 million or the 1,000 employee figure for 2025 and 2026. The free check returns the year-by-year answer.
Where does the text live?
The amending directive is OJ L 2026/470 of 26 February 2026, CELEX 32026L0470. The consolidated CSRD as at 18 March 2026 carries Article 5(2) as amended. The accounting provisions are in Directive 2013/34/EU. This site links each of them and cites the article on every page.
Does the directive apply directly to companies?
No. It is addressed to the Member States, which must transpose it. The national measure creates the enforceable duty and may use the options the directive leaves open, including the 2025-2026 exemption and the financial holding option.
What is the first reporting year?
It is a financial year, not a calendar date. For the main threshold, a company whose financial year starts on 1 January reports for the year starting 1 January 2027. A company with a different year end uses its own start date.
Where this comes from
The article record states each requirement in our own words and cites the article. The free check returns the year-by-year scope answer. The official text is Directive (EU) 2026/470.
Not legal advice; does not certify. The national transposing measure controls the route and any option it uses.