CSRD threshold significantly increased!

A leaked document shows plans by the European Commission to significantly relax sustainability rules. This omnibus reform package focuses on the CSRD reporting directive and the EU Taxonomy. The proposed changes reduce administrative burdens for companies, but could have major implications for companies that are already preparing for and have heavily invested in these rules.

Fewer companies under CSRD

The threshold for CSRD reporting is being significantly raised. Previously, companies with 250 employees, a balance sheet total of 25 million euros, and a turnover of 50 million euros had to comply with the rules, but now it will only be mandatory for companies with at least 1,000 employees and a turnover of 450 million euros. This means that many companies will no longer be required to report on sustainability.

In addition, 'targeted assurance guidelines' will be introduced to make the audit obligation less burdensome. Requirements regarding information requests in the value chain will also be more strictly limited, and sector-specific standards will be eliminated.

Furthermore, the due diligence obligations under the CSDDD will be limited to direct suppliers, and financial institutions will be exempt.

Significant implications for companies

Although it is still a leaked concept, experts expect that these relaxations will have a significant impact. Many companies that have already made substantial investments to comply with the CSRD may soon be exempt from the obligation. Also, accounting firms specialized in CSRD assurance may expect fewer assignments.

Circulairstaal® is not hindered by relaxed regulations. We work hard every day to further sustainabilize our steel structures and continue to invest in circular and low-carbon innovations. Our customers can continue to rely on smart and circular steel structures that contribute to future-proof real estate!