One of the most ground-breaking aspects of the EU's
Corporate Sustainability Reporting Directive
("CSRD") is that it will require certain
private companies (and subsidiaries of listed companies) to
publicly report sustainability information for the first time.
Private companies incorporated in the EU will be in-scope for CSRD
reporting if they constitute "large undertakings" or
"parent undertakings of large groups" by meeting set
financial thresholds. On 13 September 2023, the EU Commission
announced proposals to increase these thresholds in light of
inflation. If adopted, it is expected that the Commission's
proposals will reduce the scope of application for CSRD reporting,
bringing thousands of EU companies outside of the CSRD regime.
