• Streamlined reporting: The Directive reduces the scope of mandatory sustainability reporting to large companies with over €450 million in turnover and 1,000 employees, ensuring smaller businesses are not overburdened.
• Simplified assurance standards: New standards for sustainability reporting assurance will be developed by July 2027, with a focus on flexibility and proportionality.
• Voluntary reporting standards: Small and medium-sized enterprises (SMEs) can adopt voluntary sustainability reporting standards, promoting inclusivity without mandatory obligations.
• Value chain protections: Protected undertakings which are companies in the value chain with fewer than 1,000 employees are protected from excessive data requests and have the right to decline to provide information exceeding the information specified in the voluntary standards, ensuring proportionality in reporting requirements.
• Due diligence obligations: Apply to companies with more than 5,000 employees and over 1.5 billion in turnover.
• Digitalisation and support: A dedicated EU portal will provide guidance, templates, information and support for sustainability reporting standards.
• Extended deadlines: Companies are granted additional time to comply, with the application of new rules postponed to 2029 for due diligence.

The Directive (EU) 2026/470 can be found here.