ARTICLE
2 July 2026

Corporate Update July 2026 - Sustainability Reporting & ESG

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EFRAG has resumed work on the development of sustainability reporting standards for non-EU groups (N-ESRS) which will be applied by non-EU groups with significant EU activities (per Article 40a of the Accounting Directive).
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ESRS FOR NON-EU GROUPS

EFRAG has resumed work on the development of sustainability reporting standards for non-EU groups (N-ESRS) which will be applied by non-EU groups with significant EU activities (per Article 40a of the Accounting Directive).

EFRAG intends to consult on the draft N-ESRS in the second half of July 2026 and is inviting companies to express their interest in participating in a dedicated field test of the exposure draft by 1 July 2026 by registering on the N-ESRS website.

CSDDD GUIDELINES

The European Commission has launched a consultation on the development of guidelines under the Corporate Sustainability Due Diligence Directive (CSDDD).

The proposed guidelines are intended to provide practical guidance to in-scope companies on how to comply with their due diligence obligations and to Member State authorities on implementation and enforcement. They will also be relevant to stakeholders (and their representatives) engaging in the due diligence process, as well as to companies forming part of in-scope companies’ value chains.

In particular, the guidelines are expected to address: model contractual clauses; the due diligence process; third-party verification; industry and multi-stakeholder initiatives; data and information sources; digital tools; stakeholder engagement; and penalties.

Adoption of the guidelines is currently planned for Q1 2027. The CSDDD will apply from July 2029 for in-scope companies.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

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