The CSRD reporting requirements pose significant organisational, procedural and strategic challenges for companies (see also our CSRD ABC ). The CSRD was therefore controversial from the outset, which is why it has not been fully transposed into national law in all Member States. The multitude of critical voices led to a reconsideration at EU level of both the scope, and the content and extent of the reporting requirements. The planned changes are part of the EU’s so-called Omnibus Package, providing for various adjustments to the CSRD. Some of these changes are already in force, whilst others are still pending. This often raises the question of which regulations apply at present. The following table provides a structured overview of the relevant legal acts relating to the CSRD – from the original version to the current government draft.
| Regulations / Legal act |
Status |
Content requirements |
|
Original version of the CSRD
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014 and Directives 2004/109/EC, 2006/43/EC and 2013/34/EU as regards sustainability reporting by companies
|
In force since 5 January 2023. Implementation into national law required. No implementing legislation has come into force in Germany. A government draft is available. |
Very broad scope of application; gradual introduction
Wave 1: From 2025 for the financial year 2024
(companies that are already required to report under CSR-RUG)
public-interest companies (listed companies, financial service providers, insurance companies):
- with > 500 employees, and
- balance sheet total: > EUR 25 million or
- revenue > EUR 50 million
Wave 2: From 2026 for the financial year 2025
All large companies that exceed two of the following three criteria:
- balance sheet total: > EUR 25 million
- revenue: > EUR 50 million
- employees: > 250
Wave 3: From 2024 for the financial year 2026
Listed companies that exceed two of the following three criteria:
- total assets: > EUR 450.000
- revenue: > EUR 900.000
- employees: > 10
Wave 4 (non-EU companies): From 2026 for the financial year 2028
- turnover in the EU > EUR 150 million
- with EU connection through:
- EU subsidiary subject to reporting requirements, or
- EU branch with turnover > EUR 40 million
|
European Sustainability Reporting Standards (ESRS)
Commission Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council with regard to sustainability reporting standards (C/2023/5303 final) |
In force since 1 January 2024. As a Delegated Regulation, it applies directly to all companies subject to reporting requirements. |
Prepared by the European Financial Reporting Advisory Group on behalf of the European Commission.
- Determine the scope and content of reporting requirements
- Apply for the first time to reporting requirements from the financial year beginning on 1 January 2025.
- The first set of ESRS consists of 12 standards, including two general standards, five environmental standards, four social standards and one governance standard.
- Currently contains approximately 1,100 qualitative and quantitative publication points/data
- Materiality analysis is an essential prerequisite for the applicability of the ESRS
|
|
Stop-the-Clock Directive
Directive (EU) 2025/794 of the European Parliament and of the Council of 16 April 2025 amending Directive (EU) 2022/2464 (CSRD) and Directive (EU) 2024/1760 (CSDDD) with regard to postponing the start of reporting obligations.
|
In force since 17 April 2025. Implementation into national law required. No implementing law has come into force in Germany. A government draft is available. |
Postponement of reporting obligations for all companies that were originally Wave 2 and 3
- Wave 2: → instead of FY 2025, now FY 2027
- Wave 3: → FY 2026 now FY 2028
- No change to the scope of application
- No impact on Wave 1 and 4
|
„Quick Fix“Regulation
Commission Delegated Regulation (EU) 2025/1416 of 11 July 2025 amending Delegated Regulation (EU) 2023/2772 as regards postponing the date of application of the reporting requirements of the for certain companies.
|
In force since 13 November 2025. As a Delegated Regulation, it applies directly to all reporting entities.
|
Amendment to the ESRS by introducing simplifications and transitional provisions for Wave 1 companies
- Postponement of individual ESRS disclosure requirements for Wave 1 companies by two years; first-time disclosure required for the 2027 financial year
- Phase-in relief, which previously only applied to companies with up to 750 employees, is extended to all Wave 1 companies. This affects, among others:
- ESRS E4 (biodiversity)
- ESRS S2 (workforce in the value chain)
- ESRS S3 (affected communities)
- ESRS S4 (consumers and end Users)
|
Omnibus I Directive
(Proposed Directive COM(2025)81) |
Trilogue negotiations have been completed – publication in the Official Journal still pending |
Fundamental reduction in scope
New, uniform threshold for EU companies:
- turnover: > 450 million
- employees: > 1,000
- If Wave 1 companies exceed the old thresholds but not the new ones, national legislators can stipulate that these companies may suspend their reporting obligations for two years and only have to report in 2028 for the 2027 financial year
- No more differentiation between public-interest companies and listed SMEs
- Number of companies affected falls by approx. 80%
Non-EU companies
- turnover in the EU > EUR 450 million
- with EU connection through:
- EU subsidiary subject to reporting requirements, or
- EU branch with turnover > EUR 200 million
|
Simplified ESRS
(future delegated regulation) |
As part of the Omnibus Package, the European Commission commissioned EFRAG in spring 2025 to simplify the ESRS. On 3 December 2025, EFRAG submitted the final drafts to the European Commission. The Simplified ESRS are to apply from the 2027 financial year onwards. |
- Reduction of mandatory data points by around 61–70% (from approx. 1,100 to approx. 320).
- Elimination of all voluntary disclosures
- Simplified materiality analysis (DMA): Introduction of a simplified, clearer and more audit-friendly materiality process
- Die ESRS sollen nicht mehr rein als Compliance‑Checkliste, sondern als Fair‑Presentation‑Rahmenwerk verstanden werden
|
| Government draft |
On 3 September 2025, the German government adopted the second government draft (RegE) for the implementation of the Corporate Sustainability Reporting Directive (CSRD). |
- Implementation of the CSRD 1:1
- Already contains provisions of the Stop the Clock Directive
- Includes suspension of reporting requirements for Wave 1 companies that exceed the old thresholds but not the new ones
|
It is now clear that significantly fewer companies than originally anticipated will be subject to the requirements of the CSRD. At the same time, the start of application for those companies that meet the future thresholds has been postponed to the 2027 financial year, with initial reporting in 2028. However, it remains essential for these companies to prepare for their first sustainability report in a timely and structured manner and to promptly establish the necessary processes, systems and responsibilities.
But even companies that do not immediately fall below the CSRD thresholds should not ignore these developments. This is because the reporting requirements cover the entire value chain of the companies subject to reporting – including their suppliers and other business partners. It is therefore foreseeable that even companies that are not subject to reporting requirements will have to provide sustainability information to meet the requirements of their customers. The Voluntary Sustainability Reporting Standards for SMEs (VSME), which are also currently being revised, serve as a guide. They set a minimum standard for sustainability issues to be disclosed by non-reporting companies, which reporting companies may not exceed. Non-reporting companies are therefore well advised to proactively implement this standard, especially if they expect enquiries from their contractual partners.
