SEC Proposed Rule Release No. 33-11042, The Enhancement and Standardization of Climate-Related Disclosures for Investors.
The CSRD refers to the E.U. Accounting Directive for the size criteria, which are therefore unchanged.
More specifically, undertakings with securities (may be shares or bonds) admitted to trading on a regulated market in the European Union. The same definition applies to non-E.U. undertakings (referred to as “third-country undertakings”).
Small undertakings are defined as undertakings that meet at least two of the following criteria: (1) no greater than €4 million balance sheet total, (2) no greater than €8 million net turnover, and (3) no greater than 50 employees.
Medium-sized undertakings are defined as undertakings that do not qualify as small and that meet at least two of the following criteria: (1) no greater than €20 million balance sheet total, (2) no greater than €40 million net turnover, and (3) no greater than 250 employees.
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What may be deemed “equivalent” is yet to be determined by the EC, which may also exempt non-E.U. listed companies for a transitional period.
May also present E.U. subsidiaries with a common non-E.U. parent that are within the scope of the CSRD in one consolidated E.U. report under ESRS (until 2029).