On February 24, 2026, the European Council joined the European Parliament in voting to approve simplifications to the Corporate Sustainability Reporting Directive (CSRD) that are designed to reduce an entity’s reporting burden. With these approvals in place, the proposed simplifications to the CSRD are now final in a new directive.
The CSRD initially came into force in the EU on January 1, 2023, which was followed in February 2025 by a proposed Omnibus package that delayed and streamlined the requirements.
The following table outlines the key final changes to the CRSD under the recently approved Omnibus package.
The final directive also contains significant changes to the Corporate Sustainability Due Diligence Directive (CSDDD) to reduce the reporting burden. In particular, CSDDD reporting thresholds were revised to include only EU entities with 5,000 or more employees and over €1.5 billion in revenue. While other changes were made to the CSDDD, the reporting threshold changes will result in a significant reduction in the number of entities in scope, particularly those outside the EU.
Next steps
The final directive enters force 20 days after being published in the Official Journal of the European Union, which occurred on February 26, 2026. EU member states have one year after the directive enters into force to transpose it into national legislation.
Contacts:
Managing Director, ESG & Sustainability Services
Grant Thornton US
Marjorie is a Managing Director in the SEC Regulatory Matters Group, with more than 15 years of experience in auditing, accounting and SEC reporting.
Arlington, Virginia
Managing Director, ESG & Sustainability Services
Grant Thornton LLP
J.B. leads advisory and assurance engagements in a number of subject matter areas, including California climate reporting requirements, SEC Climate Rule, CSRD, and greenhouse gas emissions reporting.
Content disclaimer
This content provides information and comments on current issues and developments from Grant Thornton Advisors LLC and Grant Thornton LLP. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC and Grant Thornton LLP. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.
For additional information on topics covered in this content, contact a Grant Thornton professional.
Grant Thornton LLP and Grant Thornton Advisors LLC (and their respective subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Grant Thornton LLP is a licensed independent CPA firm that provides attest services to its clients, and Grant Thornton Advisors LLC and its subsidiary entities provide tax and business consulting services to their clients. Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
Trending topics
Share with your network
Share