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.
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