CSRD from financial year 2027: higher thresholds, no retroactivity and a role for the works council
On 11 November 2026, Minister Heinen of Finance, also on behalf of the State Secretary for Justice and Security, sent the Dutch House of Representatives a third memorandum of amendment to the bill implementing the EU Corporate Sustainability Reporting Directive (CSRD) (parliamentary paper 36 678). The memorandum also implements the Omnibus amending Directive (EU) 2026/470, which significantly narrows the scope of the reporting obligation.
Who must report, and from when?
The reporting obligation will apply from financial year 2027 to listed and unlisted companies with an average of more than 1,000 employees during the financial year and net turnover of more than EUR 450 million on the balance sheet date. Both thresholds must be exceeded. The exact scope will be set out in the implementing decree on sustainability reporting, the draft of which will again be submitted to Parliament. Companies required to report must file their management report with the trade register and publish it free of charge on their own website.
No retroactive effect
It had previously been considered to apply the act retroactively from financial year 2024. The government has now abandoned that plan. In its advice of 3 June 2026, the Advisory Division of the Council of State pointed out that a directive cannot in itself impose obligations on companies, and that the principle of sincere cooperation does not require obligations to be imposed retroactively. In the interest of legal certainty, the government followed that advice. A proposed remedial clause has also been dropped.
The role of the works council
The bill also provides for the involvement of the works council, through Article 23(2) of the Dutch Works Councils Act (WOR). At least once a year, a consultation meeting must address the relevant information from the sustainability reporting and how that information is obtained and verified. The works council may make its views known. This discussion was already included in the bill; the memorandum of amendment only adjusts the cross-reference.
Practical tips
Determine whether your company will exceed both thresholds for financial year 2027: an average of more than 1,000 employees and more than EUR 450 million in net turnover.
Schedule the annual discussion of sustainability reporting with the works council in the consultation cycle and make sure the council receives the relevant information in good time.
Follow the implementing decree that will again be submitted to Parliament, as it will set out the exact scope.
Read more on this topic in our knowledge base. Questions about your own situation? Contact us.
This blog provides general information and is not legal advice. For advice on a specific situation, please contact us.
