CSRD: A European Shift Reshaping the Game for Businesses
During the night of December 8 to 9, the European trilogue revised downwards the application thresholds of the CSRD. This decision marks a major political rebalancing and brings back into the regulatory scope companies that thought they were exempt.
The new rules now impose the CSRD on EU companies with more than 1,000 employees and net revenue exceeding €450 million, compared to 1,750 employees in the version passed at the end of November. Non-European companies will be subject to the same requirement as soon as they generate more than €450 million in revenue in the EU. Listed SMEs and financial holdings remain exempt from the directive. This decision marks a significant reversal following a phase of simplification that some economic stakeholders deemed excessive.
According to Solène Garcin-Charcosset, an ESG consulting director at Tennaxia, this shift sends a clear message: « The European Parliament went too far in simplifying. » Intermediate-sized companies need robust non-financial benchmarks to structure their relationships with investors, clients, and employees.
Streamlined Bonds
The reform also introduces a more quantitative aspect to reporting. Sectoral reporting becomes voluntary, and companies with fewer than 1,000 employees can rely on the VSME standard to limit the extent of disclosures. Meanwhile, the duty of vigilance will only apply to companies with more than 5,000 employees and €1.5 billion in revenue, keeping its application relevant to very large groups.
The 2025 Tennaxia study highlights that 67% of companies see the CSRD as a resilience lever, and 62% view it as a more refined tool for managing their performance. The week of December 10 to 16 will be crucial, with votes from Coreper, the Committee on Legal Affairs, and the plenary session in Strasbourg. The goal is clear: to stabilize a regulatory framework that companies expect to be demanding yet, most importantly, predictable.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
