Include in the management report information necessary to understand the undertaking's sustainability impacts and how sustainability matters affect its development, performance and position
What changes
Large undertakings between the old size test and 1000 employees, and all listed SMEs, lose the individual sustainability-reporting duty entirely.
Prior rule vs new rule
Large undertaking under Art. 3(4) of Directive 2013/34/EU (commonly summarised as exceeding 2 of 3: >250 employees / turnover >EUR 50m / balance sheet >EUR 25m, though this proposal's own text does not restate those figures) or an SME with securities on an EU regulated market
Article 19a(1) of Directive 2013/34/EU requires large undertakings and small and medium-sized undertakings with securities admitted to trading on an EU regulated market, excluding micro-undertakings, to prepare and publish a sustainability statement at individual level.
More than 1000 employees on average during the financial year (large-undertaking criteria under Art. 3(4))
Include in the management report information necessary to understand the undertaking's sustainability impacts and how sustainability matters affect its development, performance and position
Who is affected
Burden drivers
Source text
Large undertakings which, on their balance sheet dates, exceed the average number of 1000 employees during the financial year shall include in their management report information necessary to understand the undertaking’s impacts on sustainability matters, and information necessary to understand how sustainability matters affect the undertaking’s development, performance and position.
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