In accordance with the Accounting Directive, the European Commission is obliged to regularly review and, if necessary, adjust the thresholds for the classification of company size. Against the backdrop of high inflation rates, the thresholds for total assets and net sales have now been raised.

The European Commission has adjusted the size criteria for SMEs, which also affects the group of users of the CSRD obligation – and reduces it. Some previously “large” companies will therefore fall into the group of companies that will be required to report one year later, from 2026 for the 2025 reporting year.

In addition, the objection motion by 44 Members of the European Parliament calling for a weakening of the ESRS was rejected by the European Parliament. The motion failed by 358 votes to 261.

In addition, the European Commission’s 2024 work program provides for a postponement of the sector-specific ESRS, the elimination of taxonomy disclosures on non-material economic activities and a further simplification of corporate reporting.