New vote on CSRD next week
Next week, a new vote will be held in the European Parliament on which companies should be subject to sustainability reporting under the CSRD from 2026. The previous proposal, presented by Swedish MEP Jörgen Warborn (M) and the JURI Committee, suggested that only companies with more than 1,000 employees should be included. However, the proposal did not receive sufficient support and could not be adopted.
Moreover, the European Parliament has blocked the mandate to move directly forward with the Omnibus compromise. All political groups now have the opportunity to submit amendments ahead of the new vote on 13 November. If the EPP does not support stricter rules on civil liability, rapporteur Jörgen Warborn may need to seek support from far-right groups, which could weaken the directives. This creates uncertainty for companies that need stable regulations, and it is important that the Omnibus regulation is finally adopted before the end of the year.
Current reporting thresholds
CSRD:
- European Commission: 1,000 employees + €50 million turnover
- Council: 1,000 employees + €450 million
- European Parliament: 1,000 employees + €40 million, with some exemptions
CS3D:
- European Commission: 1,000 employees + €450 million
- Council and European Parliament: 5,000 employees + €1.5 billion
Simplified reporting
EFRAG is simplifying the ESRS standard by reducing data points by 68% and switching to a fair presentation framework instead of strict compliance. This provides greater flexibility, better comparability, and more forward-looking reporting that reflects companies’ real sustainability risks. Previous compliance interpretations have created unnecessary challenges, as many companies were forced to report on areas they themselves considered non-material. EFRAG will present its final revised ESRS to the European Commission on November 30th.