#32026L0470Directive (EU) 2026/470 amending corporate sustainability reporting and due diligence requirements
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This directive significantly narrows the scope of mandatory sustainability reporting under the CSRD. Only large undertakings with net turnover exceeding EUR 450 million AND more than 1,000 employees on average will now be required to report at individual and group level. It introduces a 'value chain cap' protecting undertakings with 1,000 or fewer employees from excessive data requests by reporting companies. Assurance standards are simplified: the deadline for limited assurance standards is postponed to 1 July 2027, and the move to reasonable assurance standards is cancelled. Simplified transitional registration rules are created for third-country auditors. The European Financial Stability Facility is exempted from sustainability reporting.
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Key Changes
- Mandatory sustainability reporting limited to undertakings with net turnover > EUR 450 million AND > 1,000 employees
- Limited assurance standards adoption deadline postponed from 1 October 2026 to 1 July 2027
- Requirement to adopt reasonable assurance standards by 1 October 2028 is removed
+ 3 more changes with Pro
Obligations
What this law requires
Large undertakings with net turnover exceeding EUR 450 million AND more than 1,000 employees on average must prepare and publish sustainability reporting at individual and group level
Audit firms conducting sustainability reporting assurance must designate at least one key sustainability partner who is approved as a statutory auditor in the relevant Member State
The Commission must adopt limited assurance standards for sustainability reporting by 1 July 2027 (postponed deadline)
Member State competent authorities must register third-country auditors and audit entities issuing sustainability assurance reports on third-country entities with securities admitted to regulated markets, with simplified conditions during the transitional period
Third-country auditors and audit entities must provide specified information to Member State competent authorities for registration to be valid; competent authorities must decline registration if information is not provided