CSRD size limits are increased

The size limits for reporting under the Corporate Sustainability Reporting Directive (CSRD) have been increased, so fewer companies will now be caught.

The European Commission has redefined company and group size criteria in the EU, which will impact on the applicability of the EU’s new sustainability reporting framework. The CSRD applies to large EU undertakings, for which the size criteria have changed as follows:

Balance sheet total: exceeding EUR 25M (currently EUR 20M); and
Net turnover: from exceeding EUR 50M (currently EUR 40M).
(Employee number threshold remains over 250.)
At least two of the above criteria need to be met.

The CSRD also applies to listed SMEs in the EU, so those with listed EU subsidiares within their groups will be interested to know that the threshold for these will now be:

Balance sheet total: exceeding EUR 5M (currently EUR 4M); and
Net turnover: from exceeding EUR 10M (currently EUR 8M).
(Employee number threshold remains at or over 50.)
At least two of the above criteria need to be met.

In due course, the CSRD will also apply to 'third country undertakings' generating an annual net turnover of €150 million in the EU at a consolidated level and with a branch or subsidiary in the EU that meets certain criteria and thresholds, for which different reporting standards are expected to be developed. Members can find more information on the CSRD and ESRSs in the monthly RoundUps.