Omnibus cuts non-EU companies in the scope of CSRD from 10,000 to 1,200: EFRAG

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🗞️ Driving the news: The European Financial Reporting Advisory Group (EFRAG) has confirmed that the number of non-EU companies in the scope of the EU’s Corporate Sustainability Reporting Directive (CSRD) will drop dramatically, from roughly 10,000 to about 1,200, following the European Commission’s Omnibus simplification initiative

🔭 The context: Under the revised CSRD scope, only non-EU companies with net EU revenue above €450 million for two consecutive years and EU subsidiaries or branches exceeding €200 million will need to report
• Previously, thresholds were lower (€150M revenue globally and €40M in EU subsidiaries)
• The next step is the development of the Non-EU ESRS (N-ESRS), with a draft consultation planned for mid-July 2026 and final technical advice due to the Commission in January 2027

🌍 Why it matters for the planet: Reducing the number of non-EU companies in scope risks shrinking the global coverage of sustainability disclosures, meaning fewer multinational corporations will report their environmental impacts in line with EU standards
• This could slow the availability of comparable ESG data for climate, pollution, water use, and biodiversity impacts, potentially limiting investors’ and regulators’ ability to drive decarbonization and sustainable practices across global supply chains

⏭️ What’s next: EFRAG plans to resume N-ESRS development, focusing on sustainability impacts rather than risk and opportunity reporting
• Companies are being invited to participate in a dedicated field test of the exposure draft
• After a 100-day consultation, the technical advice will be submitted to the European Commission in January 2027

💬 One quote: “The new thresholds reduce the number of non-EU companies in scope by around 88%, from 10,000 to roughly 1,200.” – EFRAG presentation, June 2026

📈 One stat: Approximately 350–450 U.S. companies and 150–200 UK companies will remain within the CSRD reporting scope under the new Omnibus rules

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