European Sustainability Reporting Standards (ESRS). When do companies need to report?
The reporting requirements will come into effect over a period of four years, starting in 2024. The report itself should be published no later than four months after the end of the indicated financial year.
• From January 1, 2024 Large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025
• From January 1, 2025 Large companies that are not presently subject to the non-financial reporting directive, meeting two of the three following criteria, with reports due in 2026:
o more than 250 employees
o € 50 Mio in turnover
o € 25 Mio in total assets
• From January 1, 2026 Listed SMEs and other undertakings, with reports due in 2027 → SMEs can opt-out until 2028
• From January 1, 2028 Non-EU companies with a net turnover over € 150 Mio in the EU, if they have at least one subsidiary or branch in the EU and exceed certain thresholds, with reports due in 2029
As a result, reporting in accordance with the ESRS will be mandatory for around EU 50,000 companies by January 1, 2025.