The CSRD entered into force on 5 January 2023, replacing the Non-Financial Reporting Directive (2014/95/EU) (NFRD) and introducing additional detailed reporting requirements in relation to in-scope companies’ impacts on the environment, human rights issues, social standards, and sustainability-related risks and how these considerations affect companies’ development, performance and position. For further detail on the scope and requirements of the CSRD, please see our previous Engage article here.
As a Directive, the CSRD does not have direct effect in Member States, but instead the CSRD required Member States to implement the requirements in local law by 6 July 2024. Although this deadline has now expired over three months ago, 17 Member States are still yet to transpose the CSRD into their national legislation, and consequently the European Commission announced on 26 September 2024 that it had commenced infringement proceedings against the 17 Member States for failing to meet this deadline.
In the list below, we have summarised the transposition status for each Member State across the EU, including whether a Member State has sought to amend the requirements or to extend beyond the minimum requirements under the CSRD ("gold-plating"). Please do get in touch with us if you would like to find out more, including for advice regarding the applicability of the CSRD as well as how to prepare for compliance.
In addition, we have created an interactive map based tool to enable you to directly compare transposition status across different Member States, please see here.
Please note, the information set out below was last updated on 10 October 2024. We are continuing to monitor the transposition of the CSRD by Member States, and will include updated information on our comparative map tool here as well as on our Global Vision Tool here.
CSRD Transposition Status across Member States
Austria
The government has not yet released any draft legislation to transpose the CSRD into local law, and no indication as to timing has yet been provided.
Belgium
The government has not yet released any draft legislation to transpose the CSRD into local law, and no indication as to timing has yet been provided. However, it is understood that inter-cabinet consultations are currently in progress (which must be completed prior to any draft bill being submitted to parliament) and a proposed draft law has been submitted to the Council of State. There is no further indication as to the timing of the transposition.
Bulgaria
The CSRD was brought into law through amendments to the Accounting Act and the Independent Financial Audit Act which were adopted on 14 August 2024 and 4 September 2024 respectively.
There have been no key deviations from the CSRD requirements or gold-plating.
A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Croatia
The CSRD requirements were adopted into national law on 27 July 2024 through amendments to a number of local laws, in particular to the Accounting Act (OG No. 85/2024), the Audit Act (OG No. 127/2017, 27/2024, 85/2024) and the Capital Markets Act (OG No. 65/18, 17/20, 83/21, 151/22, 85/24).
Compliance with the CSRD will be supervised by the Croatian Financial Services Supervisory Agency (HANFA). Non-compliance with the CSRD under the Accounting Act may result in a number of penalties, including monetary fines for companies and for company directors.
There have been no key deviations from the CSRD requirements or gold-plating. A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Cyprus
The Cypriot government introduced a draft bill in March 2024, which would introduce CSRD-related amendments to the Cypriot Companies Law. It is however unclear when the draft bill will be brought into law.
The draft bill does not provide for any substantive deviations from the CSRD requirements.
Czechia
The Czech government has sought to implement the CSRD in two phases:
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the first phase of the transposition adopted the CSRD reporting requirements specifically for the first wave of companies who were already subject to the Non-Financial Reporting Directive requirements, and who must comply with the CSRD from 2025 (in respect of financial year commencing from 1 January 2024). The requirements were adopted under Act No 349/2023 in December 2023, and took effect from 1 January 2024; and
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the second phase of the transposition will extend the CSRD reporting requirements to all other remaining in-scope groups under the Directive, starting with "large undertakings" and "parents of large groups" who will need to comply from 2026 (in respect of financial year commencing from 1 January 2025). The requirements will be implemented into the Czechia new Accounting Law, which is due to take effect on 1 January 2025. The amendments have received government approval and has been submitted to parliament for consideration.
There have been no key deviations from the CSRD requirements or gold-plating. A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Denmark
The Danish parliament adopted the final legislative proposal to implement the CSRD into national legislation on 2 May 2024. The adoption of the proposal entails changes to the Danish Financial Statements Act, the Danish Act on Approved Auditors and Audit Firms, along with Danish corporate and financial legislation.
There have been no key deviations from the CSRD requirements, however the Danish transposition has extended the scope of the CSRD to apply to more entities than required under the Directive. Under Danish law, commercial foundations, co-operatives and state-owned limited liability companies will also fall within the scope of the CSRD reporting requirements.
In addition, it should be noted that the financial thresholds for large, medium and small undertakings and large groups are converted from Euros into DKK.
A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Estonia
The draft law transposing the CSRD was published on 23 February 2024 and is currently waiting for approval from parliament. The draft law proposes changes to three main laws – the Accounting Act, the Auditors Activities Act and the Securities Market Act – and some associated regulations.
The draft law does not provide for any substantive deviations from the CSRD requirements.
Finland
Finland formally transposed the CSRD into national law in December 2023. The national law transposition of the CSRD requirements introduced amendments to the Accounting Act, the Auditing Act, the Companies Act, the Securities Markets Act, and related regulations.
There have been no key deviations from the CSRD requirements, however the Finnish transposition has extended the scope of the CSRD to apply to more companies than required under the Directive, including to large/listed co-operatives and large pensions institutions.
Compliance with the CSRD requirements will be monitored by the Finnish Financial Supervisory Authority.
A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
France
France became the first Member State to adopt the CSRD requirements on 6 December 2023.
Pursuant to Article 12 of Law no. 2023-171 of 9 March 2023 containing various provisions for adapting to European Union law in the fields of the economy, health, labour, transport and agriculture, French Order no. 2023-1142 on the publication and certification of sustainability information and environmental obligations, social and corporate governance obligations of commercial companies (the Implementing Order) transposed the CSRD, and amended several existing provisions of the French Commercial Code relating to corporate social and environmental responsibility.
The Implementing Order was supplemented by a series of Decrees. Decree no. 2023-1394 specifies:
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the thresholds applicable to the definitions of the different sizes of companies and groups of companies (C. com., art. D. 230-1 and D. 230-2),
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the type of sustainability information that must be prepared and published by the various companies concerned (C. com., art. R. 232-8-3 to R. 232-8-8 and R. 232-25 and R. 232-26), and
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the rules applicable to issuers' annual financial reports (C. mon. fin.., art. R. 451-1 and R. 451-2).
Decree no. 2024-60 dated 31 January 2024 brought forward the entry into force of articles 7 to 11 of the decree of 30 December 2023, relating to the status of statutory auditors (art. 10), the High Audit Authority (art. 9), and the status of independent third-party bodies and auditors of sustainability information (art. 11). Initially set to take effect on 1 January 2025, these provisions are now applicable as of 1 February 2024, harmonizing the implementation of the new auditing provisions.
A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
For further information regarding the specific provisions introduced in France, please see HL Engage article here.
Germany
The agreed draft German transposition act implementing the CSRD requirements was adopted by the German cabinet on 24 July 2024 (the Government Draft), after the German Ministry of Finance published its first draft on 22 March 2024 (the Ministerial Draft). The Government Draft is now being debated in the German parliament. The timeline for adoption by the legislator is not yet set. The Government Draft and the Ministerial Draft are largely consistent, and do not provide for any key deviations from the minimum requirements under the CSRD.
Greece
The government has not yet released any draft legislation to transpose the CSRD into local law, and no indication as to timing has yet been provided. However, it is understood that the relevant committee has submitted a draft to the Ministry but there is no further indication as to the timing of the transposition.
Hungary
Hungary adopted the core provisions of the CSRD into domestic legislation at the end of 2023, and supporting regulations were introduced on 8 August 2024. However further regulations are still required in respect of auditing and sustainability assurance, and also to determine the amount of the fines in case of non-compliance.
There have been no key deviations from the CSRD requirements or gold-plating. A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
It should be noted that the financial thresholds for large, medium and small undertakings and large groups are converted from Euros into HUF.
Ireland
On 9 July 2024, the Minister for Enterprise, Trade and Employment, Peter Burke TD signed into law the Statutory Instrument giving effect to the provisions of the CSRD, Statutory Instrument No. 336/2024 – European Union (Corporate Sustainability Reporting) Regulations 2024.
Curiously, the Irish CSRD law has adapted the possible exemption for group consolidation set under the Directive such that no public-interest entities are able to rely on their parent's consolidated sustainability report (under the CSRD, all entities other than listed public-interest entities are able to rely on their parent's consolidated sustainability report).
A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Italy
The CSRD requirements were transposed through Legislative Decree No. 125 of 6 September 2024, which was published in the Official Journal of 10 September 2024 ("GURI" General Series No. 212). The law took effect from 25 September 2024.
There have been no key deviations from the CSRD requirements or gold-plating. A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Latvia
Latvia has introduced a draft law transposing the CSRD requirements, which is currently at parliamentary review stage.
The draft law does not provide for any substantive deviations from the CSRD requirements.
Lithuania
The package of law transposing the CSRD into local law was approved by parliament on 25 June 2024, and entered into force on 1 July 2024.
The package consists of twelve draft laws, of which the main ones are the new Law on the Accountability of Enterprises and Enterprise Groups of the Republic of Lithuania, and the revised Law on the Audit and other Assurance services of Financial Statements of the Republic of Lithuania.
The draft bill does not provide for any substantive deviations from the CSRD requirements.
Luxembourg
The Luxembourg legislation transposing the CSRD – draft bill no. 8370 – was introduced by the Minister of Justice before the Luxembourg parliament on 29 March 2024.
The draft bill does not provide for any substantive deviations from the CSRD requirements.
There is no current indication as to when the final version of the draft bill may be adopted, however the State Council (Conseil d’Etat) did published their opinion at the beginning of July 2024 (which marks a mandatory step of the Luxembourg legislative process). The Statutory Auditors Institute (Institut des Réviseurs d’Entreprises) also published their opinion on the draft bill in July 2024.
In anticipation of the CSRD coming into effect in domestic law, the CSSF has published further guidance on its webpage here.
Malta
The government has not yet released any draft legislation to transpose the CSRD into local law. The Malta Financial Services Authority (MFSA) are expected to launch a public consultation, however no indication as to timing has yet been provided.
The Netherlands
On 20 November 2023, the Dutch government published a draft implementation bill to transpose the CSRD. The consultation period for this Draft Dutch Decree expired on 18 December 2023, however we are still awaiting the final form of the Draft Decree to be implemented.
In anticipation of the CSRD coming into effect in domestic law, the Dutch AFM has published further guidance regarding its expectations on companies to comply on its webpage here. The Dutch AFM published its own "Ten waypoints for CSRD – Double Materiality" guidance on 4 July 2024, which sets out its expectations and best practices for companies to approach the double materiality assessment under the CSRD.
The draft bill does not provide for any substantive deviations from the CSRD requirements.
Poland
The draft act implementing the CSRD into Polish law was published in mid-April 2024.
The draft bill does not provide for any substantive deviations from the CSRD requirements. It should be noted that the financial thresholds for large, medium and small undertakings and large groups are converted from Euros into PLN.
Portugal
The government has not yet released any draft legislation to transpose the CSRD into local law, and no indication as to timing has yet been provided.
Romania
Romania transposed the CSRD reporting requirements into local law under the new finance order, OMF 85/2024, on 2 February 2024.
There have been no key deviations from the CSRD requirements or gold-plating. A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Slovakia
Slovakia transposed the CSRD reporting requirements through Act No. 105/2024 Coll. amending the Slovak Accounting Act and other legislation (the Commercial Code, the Stock Exchange Act, the Commercial Register Act and the Statutory Audit Act), adopted on 24 April 2024 and effective as of 1 June 2024.
There have been no key deviations from the CSRD requirements or gold-plating. A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Slovenia
A draft bill transposing the CSRD requirements was introduced and the first reading in parliament took place in June 2024. However there is no further indication as to when this may be adopted.
The draft bill does not provide for any substantive deviations from the CSRD requirements.
Spain
A draft bill was subject to public hearing until 25 May 2023 under the previous Spanish Parliament. However, since the dissolution of the previous Spanish Parliament, the elections and the formation of a new government, the legislative procedure for the transposition of the CSRD has been delayed. There is currently no indication as to when the CSRD requirements will be adopted into national law.
The draft bill does not provide for any substantive deviations from the CSRD requirements.
Sweden
The Swedish Parliament adopted the bill to transpose the CSRD into local law on 29 May 2024, which entered into force on 1 July 2024.
While the substance of the reporting requirements under the CSRD have been introduced without deviation, the Swedish transposition bill did introduce one key deviation from the phased-in timeline for reporting set out under the Directive.
Due to the timing of the Swedish fiscal accounting, the bill requires the first set of in-scope companies to report pursuant to the CSRD for the first fiscal year beginning after 1 June 2024 (rather than 1 January 2024 under the CSRD). In effect, this means that the first category of in-scope companies (those already reporting under the NFRD) with fiscal years commencing 1 January, will not actually be required to report until FY2025.
However, on 1 July 2024, the European Commission announced that it had decided to open an infringement procedure against Sweden for this deviation of the implementation timeline. The Commission stated that "By introducing this delay, Sweden risks creating an unlevel playing field between EU companies in different Member States."
A copy of the relevant national legislation can be found on the "National Transposition" page of the EUR-Lex database here.
Our global ESG group brings together a multidisciplinary global team that provides clients with best-in-market support. We are following developments in ESG regulation very closely so please get in touch if you would like to discuss.
This note is intended to be a general guide to the latest ESG developments. It does not constitute legal advice.
Authored by Rita Hunter, Julia Cripps, Emily Julier, and Jessica Dhodakia.
