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Each record answers in the first sentence, then states the requirement in our words, what changed, the steps to take, the evidence an auditor or supervisor asks for and the common failures. Every record cites the amending article and the amended provision. The records are read from the held 27-control record of Directive (EU) 2026/470.
Article 1: Audit firms and sustainability assurance
Article 1 changes who may be approved as an audit firm, who may sign a sustainability assurance engagement, when the assurance standards arrive and how a third-country auditor is registered for sustainability work.
| Code | Duty | Binds |
|---|---|---|
A1-1 | Audit firm approval | Audit firms seeking or holding approval, and the competent authority that approves them |
A1-2 | Key sustainability partner | Audit firms that carry out assurance of sustainability reporting, and the key sustainability partner they designate |
A1-4 | Third-country auditor registration | Third-country auditors and audit entities issuing sustainability assurance reports for Union companies, and the competent authorities |
Article 2: The sustainability statement and the new thresholds
Article 2 is the centre of the rule. It raises the scope threshold, caps what a reporting company may ask of its value chain, rewrites the omission conditions, changes the group options, and adjusts assurance and third-country reporting.
| Code | Duty | Binds |
|---|---|---|
A2-10 | Perimeter change option | Parent undertakings that acquire, merge with or lose a subsidiary during the financial year |
A2-11 | Financial holding option | Parent undertakings that are financial holding undertakings with independent subsidiaries |
A2-13 | Electronic format | Undertakings and parents that prepare a management report under Article 19a or 29a |
A2-15 | Collective responsibility | Members of the administrative, management and supervisory bodies |
A2-16 | Limited assurance | Statutory auditors, assurance providers and the undertakings they assure |
A2-17 | Third-country subsidiaries | EU subsidiaries and branches of non-EU groups, and the non-EU parent |
A2-2 | Key intangible resources | Undertakings above both the turnover and headcount figures, and their directors |
A2-3 | Individual statement threshold | Individual undertakings above both figures, and their directors |
A2-4 | Value chain cap | Reporting undertakings and the undertakings in their value chain with no more than 1,000 employees |
A2-5 | Value chain transition | Reporting undertakings in their first three years, and their directors |
A2-6 | Omission conditions | Reporting undertakings that withhold information, and their boards |
A2-7 | Subsidiary exemption | Subsidiaries and intermediate parents whose information is included in a parent's consolidated report |
A2-8 | Consolidated statement threshold | Parent undertakings of groups above both figures on a consolidated basis, and their directors |
A2-9 | Group value chain cap | Parent undertakings reporting on a consolidated basis, and their value chain |
Article 4: Due diligence: scope, process and liability
Article 4 raises the CSDDD thresholds, narrows the harmonisation rule, changes the risk assessment and last-resort measures, and moves the reporting and ESAP dates.
| Code | Duty | Binds |
|---|---|---|
A4-10 | Potential impact last resort | Companies that cannot prevent or adequately mitigate a potential adverse impact |
A4-11 | Actual impact last resort | Companies that cannot bring an actual adverse impact to an end or minimise its extent |
A4-12 | Stakeholder consultation | Companies in the CSDDD scope |
A4-13 | Five-year monitoring | Companies in the CSDDD scope |
A4-14 | Due diligence statement and ESAP | Companies in the CSDDD scope, Member States and the collection bodies |
A4-3 | Holding company designation | Ultimate parent companies that are pure holding companies, and the EU subsidiary designated to act |
A4-6 | Parent due diligence | Parent companies in scope and their in-scope subsidiaries |
A4-7 | Scoping and in-depth assessment | Companies in the CSDDD scope |
A4-8 | Supplier information limits | Companies in the CSDDD scope and their business partners |
A4-9 | Prioritisation protection | Companies that prioritise adverse impacts |
Articles 3, 5, 6 and 7 do not carry a separate duty control in the held record. Their effect is stated on the article pages, because they set the transition, the transposition dates, entry into force and the addressees rather than a company duty.