CSRD: Final adoption of ESRS

Despite its detractors and a motion tabled by approximately forty deputies, the ESRS were definitively adopted by the European Parliament on October 18, 2023.

This motion aimed in particular to call into question the principle of double materiality (which we told you about here) and to review the thresholds regarding balance sheets, turnover and number of employees for SMEs*. The parliamentarians also called for simplifying and reducing the standards that they consider too burdensome for companies given the current economic situation.

Given that the motion received a majority a votes, the ESRS will therefore apply from the 2024 financial year for the largest companies and will concern, by the 2028 financial year, the smallest and branches of non-EU companies.

A vote applauded by many European sustainability stakeholders such as the GSSB* which continues its work on the interoperability of ESRS with GRI* standards, as we told you about here.

One development must nevertheless be taken into consideration: faced with the importance of inflation, a new initiative was adopted by the European Commission within the framework of Directive 2013/34/EU (or “Accouting Directive”). For SMEs, the net turnover threshold increases from 40 million to 50 million euros, and the balance sheet threshold from 20 million to 25 million euros. Around 6% of the 50,000 companies initially concerned will therefore see a reduction in their obligations under the CSRD.


CSRD: Corporate Sustainability Reporting Directive

AMF: Autorité des Marchés Financiers (French Financial Markets Authority)

ESRS: European Sustainability Reporting Standards

GRI: Global Reporting Initiative

GSSB: Global Sustainability Standards Board (responsible for setting GRI Standards)

SME: Small and Medium-sized Enterprises