The Burden Reduction Package, which aim is to reduce and streamline reporting across multiple policy areas, has implications for the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation. Some of the key proposals include:

• Targeted amendments to the Accounting Directive adjusting the size criteria for companies that fall under the reporting requirements of the CSRD, and therefore reducing the scope of application of the CSRD, as follows:
  • Small undertakings: The balance sheet total goes from EUR 4 million to EUR 5 million and the net turnover threshold from EUR 8 million to EUR 10 million.
  • Medium-sized undertakings and groups: The balance sheet total goes from EUR 20 million to EUR 25 million and the net turnover threshold from EUR 40 million to EUR 50 million.
  • Large undertakings and groups: The balance sheet total goes from EUR 20 million to EUR 25 million and the net turnover threshold from EUR 40 million to EUR 50 million.
• Postponement of the deadline for the adoption of sector-specific and third country European Sustainability Reporting Standards (ESRS) to June 2026 from June 2024. The latter does not defer the effective date of the CSRD for third country undertakings.
• Publication of a call for evidence to identify reporting requirements in the general EU framework that can be removed or rationalised.
• Clarification regarding the EU Taxonomy Regulation which states that no assessment is needed for activities that are not material to business or where companies lack evidence or data to prove compliance.

For more information, access the 2024 Commission Work Programme on the European Commission website.