Overview
- Directive (EU) 2026/470 was published on February 26, 2026 and enters into force on March 18, 2026.
- CSRD now captures companies only above €450 million in worldwide net turnover and 1,000 employees, with separate in‑scope criteria for non‑EU ultimate parents tied to EU turnover and significant EU entities.
- CSDDD due diligence applies to companies above €1.5 billion in net worldwide turnover and 5,000 employees, with specific rules for non‑EU groups and certain franchising or licensing arrangements.
- The mandate to adopt climate transition plans was deleted, the EU‑wide civil liability regime was removed, and the maximum fine for non‑compliance was cut to 3% of net worldwide turnover.
- The Commission must adopt simplified ESRS by September 18, 2026, sector‑specific standards become voluntary, smaller value‑chain partners under 1,000 employees gain protection from extra data requests, and key deadlines include CSRD transposition by March 19, 2027 and CSDDD transposition by July 26, 2028 with company compliance by July 26, 2029.