​Per article 40a of the CSRD, non-EU companies that generate over EUR 150 million per year in the EU and that have in the EU either a branch with a turnover exceeding EUR 40 million or a subsidiary that is a large company or a listed SME will have to report on the sustainability impacts at the group level of that non-EU company as from financial year 2028, with first sustainability statement published in 2029. The CSRD foresees the adoption of separate standards for this purpose.

Waiting for indications of possible changes to the CSRD deriving from the ongoing discussions leading to a simplification legislative proposal (Omnibus), on 15 January 2025, the EFRAG SRB could not vote on the formal approval of the N-ESRS Exposure Draft. However, the EFRAG SRB Chair, to conclude the technical activities, asked members to express their support for the technical content of the Exposure Draft. The approved Exposure Draft includes the option to limit the disclosures for matters other than climate to impacts that are connected with products and services destined for EU customers. The next steps include finalising the consultation package to be sent for review and finalization and waiting for the green light from the European Commission.

For questions as to whether sustainability report in accordance with article 40a of the Accounting Directive has to be produced or other questions related to CSRD/Accounting directive, please refer to the European Commission's FAQ's on the topic.

SRB pre-approved ED

NESRS ED SRB 250226

NESRS ED compared to delegated act SBR 250226