May 8, 2026

Sustainability reporting in the EU

US companies could be impacted by sustainability reporting and due diligence requirements in the EU – notably the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).

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The EU has enacted changes to the CSRD and CSDDD, reshaping sustainability reporting and due diligence obligations. These changes reflect the EU’s broader effort to streamline and simplify sustainability requirements through an Omnibus package introduced in February 2025.

For a foundational overview of the amended CSRD and CSDDD, read our Hot Topics linked below.

For an overview of the latest developments on all the other moving parts of EU sustainability reporting, including Omnibus, continue scrolling – and regularly check the timelines below for key updates.

US companies – here’s what matters most

The EU’s amendments to the CSRD and CSDDD provide certainty on whether and how companies will need to comply with these requirements. However, US companies will have to monitor relevant Member State transposition processes. Now, with the final draft ESRS delegated regulation, US companies can gain a clearer view of what needs to be reported. US companies should start moving forward again by assessing how these new scoping thresholds and reporting standards will impact their sustainability reporting strategy.

In May 2026, the European Commission (EC) published its final draft delegated regulation amending the European Sustainability Reporting Standards (ESRS), which are subject to public feedback until June 3. The final draft is very similar to the technical advice prepared by the European Financial Reporting Advisory Group (EFRAG) and provided to the EC in December 2025. Read our article for more details.

Also in May 2026, the EC launched a public feedback process on its draft delegated regulation to establish voluntary reporting standards for smaller companies. Scroll below to Other developments to see more details.

In March 2026, the first Omnibus simplification package entered into force, which includes substantial amendments to both the CSRD and CSDDD. Most notably, the agreement increases the scoping thresholds for both directives, significantly reducing the number of companies in scope. The table below summarizes key changes to the CSRD and CSDDD.

Also in March 2026, the EC proposed revisions to the EU Taxonomy Climate and Environmental Delegated Acts to simplify and update the technical screening criteria. Scroll down to Other developments to see more details on the proposed revisions.

Here you’ll find key information to help you navigate the evolving EU sustainability reporting landscape. Use the jump links below to quickly access specific topics.

Click on the links to understand more about EU sustainability reporting.

CSRD

The CSRD, amended the Accounting Directive (2013/34/EU) – which applies to non-EU companies that meet certain employee, turnover (revenue) and/or asset thresholds – and to non-EU groups with substantial activity and a presence in the EU. In-scope companies are required to prepare sustainability reporting in accordance with the ESRS. The Accounting Directive and CSRD have been further amended by the Stop-the-clock Directive (2025/794) and Content Directive (2026/470). A ‘Quick fix’ Delegated Act (2025/1416) introduced as part of the Omnibus package also impacts CSRD reporting requirements.

CSDDD

The CSDDD, (2024/1760) applies to non-EU companies that met certain revenue and/or royalty thresholds. In-scope companies are required to comply with certain due diligence obligations (including reporting and transition plan adoption) related to actual and potential adverse human rights and environmental impacts. The CSDDD has been further amended by the Stop-the-clock Directive (2025/794) and Content Directive (2026/470), introduced as part of the Omnibus package.

Download our Hot Topics:

Our Hot Topics, tailored to US companies, provide information on the relevant scoping and reporting requirements, as amended by the Omnibus package.

Global implications of the Corporate Sustainability Reporting Directive

Omnibus amendments have significantly reduced the scope of the CSRD and its applicability beyond the EU.

Global implications of the Corporate Sustainability Due Diligence Directive

Omnibus amendments have significantly reduced the scope and streamlined due diligence obligations to ease burden on companies.

The first Omnibus package of proposals was introduced in February 2025 to simplify and streamline certain EU legislation (including the CSRD and the CSDDD). While the amendments to the CSRD and the CSDDD have been enacted by the EU, there are other simplification measures which are being introduced in waves, with different parts progressing at varying speeds.

To help you stay informed, we’ve created five separate timelines – each tracking a specific piece of the Omnibus package. This approach will give you a clearer view of the distinct regulatory pieces and their unique path forward. Click each of the boxes below to view a timeline of what’s happened so far and what’s expected next.

While these timelines focus on Omnibus-related developments, the Other developments section below covers other EU sustainability reporting and assurance developments that are ongoing outside the Omnibus process.

As legislative discussions evolve, future dates may shift, so check back regularly for the latest updates.

Hover over each of the following boxes to read the latest.

CSRD, as originally adopted: Transposition

The CSRD, as originally adopted, entered into force in January 2023. Despite the deadline of July 6, 2024 to transpose it into national law, a handful of Member States have not yet transposed.

For Wave 1 companies, these delayed transpositions continue to cause legal uncertainties relating to, for example, continued application of the sustainability reporting regime under the Non-Financial Reporting Directive (NFRD).

The CSRD, as originally adopted, entered into force in January 2023. Despite the deadline of July 6, 2024 to transpose it into national law, a handful of Member States have not yet transposed.

CSRD: Non-EU standards

Non-EU groups in scope of the CSRD are required to report in accordance with the forthcoming non-EU group standards (NESRS). The EC’s adoption deadline for the NESRS is June 30, 2026. However, a de-prioritization process proposed by the EC would further delay this timeline until at least October 2027, leaving little time for non-EU group to prepare for reporting in FY2029 (based on FY2028 data). EFRAG aims to conduct a 100-day public consultation from July 2026 to deliver technical advice to the EC in January 2027.

CSRD: Guidance

EFRAG has launched an ESRS Knowledge Hub, a new digital gateway designed to help companies and stakeholders navigate the ESRS, support consistent implementation and enhance the transparency and usability of ESRS. The platform includes key ESRS-related materials, including standards, implementation guidance and supporting documents.

CSRD: VSME

The EC launched a public consultation on the draft voluntary standard for smaller companies. These voluntary standards are based on EC's recommendation on voluntary sustainability reporting for SMEs that includes a voluntary standard for SMEs (VSME standard). Companies in scope of the CSRD would be required to limit information requests to the companies in their value chain with less than an average of 1000 employees to the disclosures specified in the voluntary standard. The EC plans to adopt the delegated regulation in the second quarter of 2026.

CSRD: Assurance

The CSRD requires the EC to adopt limited assurance standards by July 1, 2027. The EU intends to use the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, as the foundational base for developing these standards. The technical advice associated with these standards is expected to be provided to the EC by September 30, 2026.

CSDDD: Transposition

Member States have until July 26, 2028 to transpose the CSDDD into their respective national law. To avoid a fragmented regulatory landscape, a harmonization principle prohibits Member States from introducing provisions diverging from many of the due diligence obligations within the CSDDD.

CSDDD: Guidance

By March 31, 2029, the EC will establish the CSDDD report content and criteria, which are expected to align with similar reporting criteria in the CSRD.

The EC will issue guidelines to support companies in fulfilling due diligence obligations by July 26, 2027.

By March 31, 2029, the EC will establish the CSDDD report content and criteria, which are expected to align with similar reporting criteria in the CSRD.

The EC will issue guidelines to support companies in fulfilling due diligence obligations by July 26, 2027.

CSDDD: Assessments

By July 26, 2031, the EC will assess the effectiveness of certain implementation matters, including whether a scoping approach specific to high-risk sectors should be introduced and whether the value chain definition should be revised.

EU Taxonomy: Amendments

By mid-2026, the EC is expected to adopt amendments to the EU Taxonomy’s Climate and Environmental Delegated Acts to revise activity descriptions and technical screening criteria. These proposed revisions aim to better align with other EU legislation and are expected to enter into force by January 1, 2027 and apply from 2026 reporting periods.