European Union (EU)* : Amendment to Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : EIC 230/1
 EIC 230/6/16

26 February 2026

Dear Sirs,

Further to Commercial Information Circulars No. 984/2022 of 20 December 2022 and No. 554/2024 of 8 July 2024, the European Parliament and the Council of the EU adopted Directive (EU) 2026/470 to amend, among others, Directive (EU) 2022/2464 and (EU) 2024/1760 as regards requirements of Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). Directive (EU) 2026/470 was published on 26 February 2026 and can be accessed through the following link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202600470.

2.Under the updated CSRD, reporting requirements apply to EU companies with over 1,000 employees and above EUR 450 million net turnover worldwide. For non-EU companies, updated requirements will apply only to companies with a net turnover above EUR 450 million within the EU for the parent undertaking and above EUR 200 million net turnover for the local subsidiary or branch in the EU. Companies that started reporting in financial year 2024 but later fell out of scope are exempt from reporting for 2025 and 2026. Certain EU and non-EU financial holding companies are also exempt from consolidated reporting.

3.As for CSDDD, the revised scope covers only EU companies with over 5,000 employees and over EUR 1.5 billion net turnover worldwide, as well as non-EU companies with over EUR 1.5 billion net turnover generated within the EU. The Directive capped penalties for failure to apply the rules correctly at 3% of a company’s net worldwide turnover. The date of implementation by EU Member States is further postponed by one year to 26 July 2028. Companies will have to comply with the CSDDD requirements from 26 July 2029.

4.The Directive will enter into force on 18 March 2026. For further details on the amendments, please refer to Directive (EU) 2026/470.

5.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5684.

Yours faithfully,

(Miss Jenny MOK)
for Director-General of Trade and Industry

* The EU comprises 27 member countries, namely, Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.