Omnibus Cuts Non-EU Companies in the Scope of CSRD from 10,000 to 1,200: EFRAG

On 10th June 2026,the European Financial Reporting Advisory Group (EFRAG) has pointed out the number of non-EU companies remaining in the scope of the EU’S Corporate Sustainability Reporting Directive (CSRD) will contract by approximately 88%, dropping from 10,000 to around 1,200 entities under the European Commission’s Omnibus simplification initiative. This drastic reduction is driven by significantly higher scope thresholds, which now require net EU revenues exceeding €450 million for two consecutive years and an EU subsidiary or branch generating over €200 million.
In response to these regulatory shifts, the European Financial Reporting Advisory Group (EFRAG) has resumed developing the sustainability reporting standard for non-EU groups (N-ESRS). The draft standard, scheduled for consultation in mid July, will run for a 100-day period alongside dedicated corporate field testing. Notably, the non-EU groups will focus exclusively on sustainability-related impacts, omitting the risk and opportunity disclosures required for EU firms. Moreover, this framework will encompass 12 standards and four reporting areas, with EFRAG aiming to submit its final technical advice to the European Commission in January 2027.

Sources:https://www.esgtoday.com/omnibus-cuts-non-eu-companies-in-the-scope-of-csrd-from-10000-to-1200-efrag/