• Sustainability

When will the sustainability report become mandatory?

The obligation to draft and publish a sustainability report enters into force in different stages. PIEs with more than 500 employees are the first group that are required to report. These undertakings already have a reporting obligation under the Non-Financial Reporting Directive (NFRD) regarding certain sustainability topics, which has been expanded under the CSRD. They will be required to provide a sustainability report on fiscal years beginning on or after 1 January 2024. This means that the first sustainability reports will be made public in early 2025.

Large undertakings and large PIEs follow a year later with a report on the fiscal year that starts on or after 1 January 2025. Undertakings that are part of a group can make use of a reporting exemption under certain conditions.

The reporting obligation for medium- and small-sized listed entities starts for fiscal years starting on or after 1 January 2026, followed by non-EU undertakings with a reporting obligation for fiscal years on or after 1 January 2028. Please find below an overview of the dates of entry into force of the reporting obligation:

Financial years starting on or from
 Who?
1 January 2024
 Undertakings which currently have to publish a non- financial disclosure in their management report based on the EU Non-Financial Reporting Directive. These are large public interest entities PIEs (banks, insurance companies, listed firms) with more than 500 employees.
1 January 2025
 Large undertakings (private limited companies, public limited companies, general partnerships and limited partnerships) with a EU legal form.
1 January 2026
 Medium and small listed firms.
1 January 2028
 Non-EU undertakings (without EU legal forms; for example originating from the United States or Japan), whereby the reporting requirement applies to the branch/major subsidiary of which the parent is outside the EU, see question 'Which undertakings from outside the EU are obliged to draft a sustainability report?'.
   

For more information, see article 5 of the CSRD and the explanation in the above questions of chapter 3.

More information:

Questions CSRD & ESRS

Do you have questions about the CSRD, ESRS or are you missing a question in this list? Send us an e-mail and we will contact you as soon as possible. For technical questions, EFRAG has set up an ESRS Q&A platform (latest release of technical explanations: December 2024). Here you can submit a question, and also find answers to previously asked questions.

Questions regarding individual facts or circumstances will not be answered through these channels. For such questions, we recommend that you contact an advisor such as your company accountant.

Disclaimer

The SER and the DASB have put this questions and answers document together based on publicly available information at the time of publication. Although these questions have been answered with the utmost care, users of this document cannot be given any guarantees relating to the accuracy, topicality and completeness of the information displayed. The SER, the DASB and other parties related to this document cannot be held liable for the consequences of the use of the information from this document. This document does not represent the view of (EFRAG) or the European Commission, nor the SER or DASB.

It is not permitted to copy or distribute the included information or individual elements (including images) without explicit permission, if this may cause confusion about the origin of the material.

Sustainability