Particle.news
Download on the App Store

EU Moves to Narrow CSRD Scope and Streamline ESRS After Provisional Deal

Next steps focus on formal adoption followed by a Commission Delegated Act to implement the simplified standards.

Overview

  • European Parliament, Council and Commission negotiators reached a provisional agreement on 9 December to amend the CSRD through an Omnibus package that sharply narrows which companies must report.
  • New thresholds set in the deal require EU companies to have at least 1,000 employees and €450 million in net turnover, with non‑EU companies in scope at €450 million in EU turnover.
  • The agreement grants exemptions and transitional relief, including an exemption for financial holding undertakings and a 2025–2026 transition for early reporters that now fall out of scope.
  • Parliament is expected to vote on the Omnibus text during its 15–18 December plenary, after which the Council must adopt it before publication and entry into force.
  • Separately, EFRAG submitted simplified ESRS on 3 December that cut mandatory data points by about 61%, emphasize proportionality and ISSB interoperability, and are now with the Commission for a Delegated Act, with EFRAG planning implementation guidance.