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The European Parliament's plenary vote in December 2025 helped establish the new roadmap for the Corporate Sustainability Reporting Directive (CSRD). 

New scope

To start, they revised the mandatory thresholds for when groups are in scope for CSRD:

• European Union (EU) undertakings and non-EU companies listed on EU-regulated markets must exceed both €450M net turnover and 1,000 employees on average in a single financial year (FY). 
• Non-EU parent entities must generate over €450M net turnover in the EU for each of the previous two consecutive FYs and have at least one EU subsidiary or branch generating over €200M the preceding FY. 

It's not either/or. Reporting for a non-EU parent entity does not necessarily fulfill its EU subsidiaries' reporting requirements. If an EU subsidiary meets the threshold for EU undertakings, it must report its own material risks and impacts. 

Not in-scope? If your company no longer meets the thresholds for CSRD, check your local laws. Some countries may allow you to stop reporting as early as this year.

New timeline

Some key dates to keep in mind based on the new CSRD roadmap:

• Q1 2026 — The Omnibus is published to the Official Journal, at which point EU countries have 12 months to introduce or update their local laws accordingly.
• Mid-2026 — The final simplified European Sustainability Reporting Standards (ESRS) from the European Financial Reporting Advisory Group (EFRAG) is adopted as a Delegated Act.
• FY 2027 — The new reporting rules apply.

Don't wait! As these rules apply to FYs, you should have your data collection processes ready 12 months ahead of the reporting deadline. To prevent a last-minute scramble in 2027, perform a "dry run" in 2026 to verify your data pipelines and materiality.

Looking for more insight? Workiva has Industry Principals dedicated to gathering and sharing Sustainability & Carbon knowledge and expertise! For more insight, follow them — Alyssa Zucker for Carbon, Esther Toth for EMEA & APAC, and Mark Mellen for North America & APAC — on LinkedIn.

What's new

While EFRAG estimates a 61% fewer mandatory data points with the simplified ESRS, a reduction in quantity may not reduce complexity; while you report fewer things, you may do so with more scrutiny. To help prepare, you can use the ESRS Transition Accelerator — now available on Workiva Marketplace! 

With this Spreadsheet and its connected queries, you can:

• Compare the ESRS Delegated Act of 2023 and the draft simplified ESRS recently published by EFRAG, and identify changes between the two.

  Change types and explanations are curated from EFRAG's Log of Amendments, and offered for educational and informational purposes. 

• Identify metrics in Sustainability Program related to ESRS, and decide how to adjust them based on the changes.
• Automatically generate import templates to easily add or update metrics based on your decisions.

To learn more, view Prepare for draft simplified European Sustainability Reporting Standards with ESRS Transition Accelerator.

Want to stay current? Follow What's new in Sustainability Reporting!

On the calendar

February 19, join Beverage Break: Understanding Simplified ESRS and Preparing for What's Next in Workiva for a regulatory deep-dive into the simplified ESRS requirements and details on how to set up your workspace to maintain CSRD-compliance. There will also be time for a Q&A and peer discussions; email your burning questions to beverage.breaks@workiva.com.

Can't attend? This Beverage Break is scheduled to accommodate Europe, Middle East, and Africa (EMEA) time zones; a recording will be available on-demand if you can't attend or need a refresher.

Share your thoughts

In addition to Beverage Breaks, the Workiva Community provides ample opportunity to engage with and learn from subject-matter experts, advisory partners, and other sustainability reporters. Join the conversation in these discussion threads:

• Community Connect: Sustainability, to learn from industry professionals and peers as you collaborate and share insights, challenges, and solutions.
• Sustainability Management, to discuss best practices and experiences with sustainability reporting, in general and within the Workiva Platform
• What's new in Sustainability, to learn the latest enhancements of Sustainability Reporting features like Sustainability Program and Sustainability Explorer
• Sustainability Feedback, to share and support ideas on how to improve Sustainability Management features

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