Directive (EU)
2026\/470 (the Directive)<\/a>, which materially reshapes the EU sustainability framework.<\/p>\n\n\n\nThe objective is clear: to simplify ESG reporting obligations, reduce compliance burdens
for companies<\/strong> \u2013 particularly SMEs, and bolster the competitiveness<\/strong> of the European economy.<\/p>\n\n\n\nThe Directive amends two foundational pillars of the EU sustainability rulebook:<\/p>\n\n\n\n
\n- the CSRD<\/strong> (Directive (EU) 2022\/2464) on corporate sustainability reporting; and
<\/li>\n\n\n\n- the CSDDD <\/strong>(Directive (EU) 2024\/1760) on corporate sustainability due diligence in the value
chainla <\/li>\n<\/ul>\n\n\n\n<\/p>\n\n\n\n
CSRD: A Reduced Scope of Application<\/strong> <\/p>\n\n\n\nThe Directive raises the size thresholds for the application of sustainability reporting obligations,
significantly re<\/strong>ducing the number of companies subject to the CSRD. <\/p>\n\n\n\nWho remains required to prepare a sustainability report?<\/strong>
The CSRD will apply exclusively to:
(i) EU companies with more than 1,000 employees<\/strong> and at least EUR 450 million in annual net turnover<\/strong>; and <\/p>\n\n\n\n(ii) non\u2010EU companies with net turnover exceeding EUR 450 million in the European Union<\/strong>, as well as their branches and subsidiaries with turnover above EUR 200 million in the EU.<\/strong><\/p>\n\n\n\n<\/p>\n\n\n\n
No changes to the timeline<\/strong><\/p>\n\n\n\nThe Directive does not modify the CSRD application timelines<\/strong>, which remain those already
redefined by Directive (EU) 2025\/794, the so\u2010called \u201cStop the clock.\u201d In brief:<\/p>\n\n\n\n\n- Public\u2010interest entities<\/strong> with more than 500 employees continue to apply the CSRD from
2024 (publication in 2025);
<\/li>\n\n\n\n- Other large undertakings<\/strong>: reporting from the financial year starting on 1 January 2027
(first publication in 2028);
<\/li>\n\n\n\n- Listed SMEs<\/strong> (excluding micro\u2010undertakings): reporting from the financial year starting on
1 January 2028 (first publication in 2029);
<\/li>\n\n\n\n- Non\u2010EU undertakings above the threshold<\/strong>: same timeline 2028\u20132029.<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
Simplified Reporting Requirements<\/strong><\/p>\n\n\n\nTo reduce the complexity of compliance activities, the Directive provides for a thorough revision
of the ESRS <\/strong>(European Sustainability Reporting Standards). Within six months of the Directive\u2019s
entry into force, the Commission will adopt a delegated act aimed at:<\/p>\n\n\n\n\n- eliminating less relevant information;
<\/li>\n\n\n\n - prioritising quantitative data<\/strong> over narrative descriptions;
<\/li>\n\n\n\n- clarifying more sharply the distinction between mandatory and voluntary
information;<\/strong>
<\/li>\n\n\n\n- clarifying the application of the materiality principle<\/strong>, so as to limit disclosures to
information that is genuinely material;
<\/li>\n\n\n\n- improving interoperability with the main global standards<\/strong> (e.g., GRI, ISSB).<\/li>\n<\/ul>\n\n\n\n
The expected outcome is more effective, comparable and proportionate reporting.<\/p>\n\n\n\n
<\/p>\n\n\n\n
CSDDD: Reduced Scope and Delayed Applicationa<\/strong><\/p>\n\n\n\nThe Directive also lightens the sustainability due diligence regime<\/strong>.
CSDDD obligations will apply only to EU companies with more than 5,000 employees and
EUR 1.5 billion in global net turnover, as well as to non\u2010EU companies with annual
turnover exceeding EUR 1.5 billion in the European Union<\/strong>.<\/p>\n\n\n\nThe entry into operation of the obligations is also deferred to 2029<\/strong> to allow for a gradual transition.
In addition, \u201cprotected<\/strong>\u201d companies \u2013 i.e., those that do not exceed the 1,000\u2010employee threshold
\u2013 may not be required<\/strong>, within value\u2010chain due diligence<\/strong>, to provide ESG information that
exceeds what is set out in the voluntary reporting standards<\/strong> referred to below.<\/p>\n\n\n\n<\/p>\n\n\n\n
Voluntary Reporting: A New Opportunity for Non-Subject Companies<\/strong><\/p>\n\n\n\nThe Directive introduces a voluntary sustainability reporting regime<\/strong>, based on the adoption,
by 19 July 2026<\/strong>, of simplified principles and standards inspired by the VSME<\/strong> \u2013 Voluntary
Standard for SMEs developed by EFRAG.
The voluntary standards<\/strong> \u2013 designed in a manner proportionate to the organisational and operational capacities of companies not subject to mandatory reporting \u2013 constitute an EU\u2010recognised framework for efficiently meeting the information requests<\/strong> of banks, investors and major commercial counterparties.
The voluntary standards also enable non\u2010in\u2010scope companies to communicate their sustainability commitments in a reliable and comparable manner<\/strong>, facilitating access to sustainable finance and increasing transparency in economic relations with stakeholders.<\/p>\n\n\n\n<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
On 26 February 2026, the Official Journal of the European Union published Directive (EU)2026\/470 (the Directive), which materially reshapes the EU sustainability framework. The objective is clear: to simplify ESG reporting obligations, reduce compliance burdensfor companies \u2013 particularly SMEs, and bolster the competitiveness of the European economy. The Directive amends two foundational pillars of the […]<\/p>\n","protected":false},"author":1,"featured_media":29207,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","footnotes":""},"categories":[452],"tags":[],"ppma_author":[74],"class_list":["post-29179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance-en"],"acf":[],"authors":[{"term_id":74,"user_id":1,"is_guest":0,"slug":"pavesio-admin","display_name":"Pavesio E Associati","avatar_url":"https:\/\/pavesioassociati.it\/wp-content\/uploads\/2022\/02\/100x100px.jpg","user_url":"https:\/\/pavesioassociati.it","last_name":"E Associati","first_name":"Pavesio","job_title":"","description":""}],"_links":{"self":[{"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/posts\/29179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/comments?post=29179"}],"version-history":[{"count":11,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/posts\/29179\/revisions"}],"predecessor-version":[{"id":29213,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/posts\/29179\/revisions\/29213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/media\/29207"}],"wp:attachment":[{"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/media?parent=29179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/categories?post=29179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/tags?post=29179"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/pavesioassociati.it\/en\/wp-json\/wp\/v2\/ppma_author?post=29179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}