Phase 1 (Financial Year 2024)
Large listed companies with
more than 500 employees already subject to the Non-Financial Reporting Directive (NFRD) are the first group required to comply.
Phase 2 (Financial Year 2025)
All other large companies that are not currently subject to NFRD but meet at least two of the following criteria:
- More than 250 employees
- Balance sheet exceeding €20 million
- Net turnover exceeding €40 million
Phase 3 (Financial year 2026)
Listed small and medium-sized enterprises (SMEs) are expected to report in 2027 for the 2026 financial year. However, the European Commission is still evaluating this and SMEs may have an opt-out option until 2028.