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FAQCSRD Article 40aEU

CSRD third-country group reporting Article 40a FAQ

is the CSRD route for certain non-EU parent groups with significant EU turnover and an EU subsidiary or branch.

This FAQ explains the amended turnover tests, publication route, assurance file, missing-information statement, financial-holding derogation, and 2028 application point.

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Author
Sorena AI
Published
May 9, 2026
Updated
Oct 15, 2026
5 sections6 primary sources
Overview

CSRD concerns sustainability reports for certain undertakings governed by the law of a country outside the EU. For financial years beginning in 2028, the route applies when the exceeds EUR 450 million net turnover in the Union in each of the last two consecutive financial years and has a or, if there is no qualifying EU subsidiary, a qualifying EU branch that exceeds EUR 200 million net turnover in the preceding financial year. Directive (EU) 2026/470 amended these tests, and Member States must transpose the amendments by 19 March 2027, so the filing route and national rules still need to be checked in each relevant Member State.

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5 of 5 questions
Question 1

When does CSRD Article 40a apply to a third-country group?

applies only when both the test and an EU presence test are met. At group level, or individual level if group-level reporting does not apply, the third-country undertaking must have generated more than EUR 450 million net turnover in the Union in each of the last two consecutive financial years.

A exceeded EUR 200 million net turnover in the preceding financial year. A branch qualifies at the same turnover level only if the has no qualifying EU subsidiary. The reporting requirement starts with financial years beginning in 2028.

  • Calculate the 's EU net turnover at group level, or individual level where group-level reporting is not applicable, for each of the last two consecutive financial years.
  • Check each relevant EU subsidiary's net turnover for the preceding financial year; the amended test no longer depends on whether the subsidiary is large or a listed SME.
  • Use the branch route only if there is no and the branch itself exceeded EUR 200 million net turnover in the preceding financial year.
  • Check the financial-holding derogation: where the is a and its subsidiaries' business models and operations are independent of one another, Member States must allow the subsidiaries and branches to decide not to publish the report.
Question 2

Who publishes the CSRD third-country sustainability report in the EU?

The report is published through a or, if there is no qualifying EU subsidiary, a qualifying EU branch. A subsidiary publishes a report covering the ultimate third-country parent at group level. A branch publishes a report covering the at group level, or at individual level if group-level reporting is not applicable.

The EU subsidiary or branch must publish and make the report accessible, but does not expressly assign preparation to that entity. The third-country parent may prepare the report, or the EU entity may prepare it on the parent's behalf. Commission guidance says at least one report must be disclosed by a subsidiary or branch in each Member State concerned; national law may allow one entity to comply by linking to a report published by another EU subsidiary or branch.

  • For a , confirm the preceding-year turnover test before assigning publication responsibility.
  • For a branch, confirm there is no before relying on the branch route.
  • Record the reporting perimeter: ultimate third-country parent group level, or individual level where group-level reporting is not applicable.
  • Map the Member States where a qualifying subsidiary or branch exists, then check whether national law permits a link to another EU entity's publication.
Question 3

What must happen if the non-EU parent does not provide all information?

does not let the EU subsidiary or branch stay silent because the withholds information. The subsidiary or branch must request the information needed to meet its obligation.

If not all required information is provided, the EU subsidiary or branch must publish the report using the information it has, and issue a statement that the did not make the necessary information available.

  • Keep the information request sent to the .
  • Preserve the response, non-response, or partial data package received from the .
  • Prepare the statement when required information is missing after the request.
  • Make the report and statement consistent with the information actually in the EU entity's possession.
Question 4

Is an assurance opinion required for Article 40a reports?

Yes. Member States must require the sustainability report to be published with an from a person or firm authorised to give an opinion on sustainability reporting assurance under the law of the or of a Member State.

If the does not provide the , the EU subsidiary or branch must issue a statement that the necessary assurance opinion was not made available.

  • Identify whether the comes from a person or firm authorised under third-country law or Member State law.
  • Keep the final with the report publication file.
  • If the opinion is missing, prepare the statement rather than omitting the assurance issue.
  • Issue the missing-assurance statement required by (3), and check the Member State's rules for publishing it.
Recommended next step

Check Article 40a scope before the report package is due

Use the CSRD Article 40a scoping file to connect EU turnover, subsidiary or branch status, parent-group information requests, assurance, and publication evidence.

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Discuss CSRD reporting scope

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Question 5

When does Article 40a start, and when is the report published?

The reporting route applies for financial years beginning in 2028. Article 40d requires the EU subsidiary or branch to publish the report, , and any applicable Article 40a(2) missing-information statement within 12 months after the balance-sheet date for the reported financial year.

Publication follows the process provided by the relevant Member State. If the documents are not freely available through the business register, they must be made available free of charge on the subsidiary's or branch's website in at least one official EU language by the same 12-month deadline. Confirm the applicable language, register, website, and filing mechanics under national law.

  • Use the 2028 financial year as the reporting trigger, not as the filing date.
  • Set the filing deadline at no later than 12 months after the balance-sheet date, subject to the Member State's publication process.
  • Publish the and any applicable (2) missing-information statement with the sustainability report.
  • Check the Article 40b third-country reporting standards and any permitted ESRS or equivalence route that apply when the report is prepared.
Primary sources

References and citations

Consolidated Directive 2013/34/EU, Article 40a
eur-lex.europa.eu4 citations
Referenced sections
  • Current consolidated Accounting Directive text for the Article 40a subsidiary, branch, Union-turnover, and financial-holding tests.
  • Supports which EU subsidiary or branch must publish and make accessible the third-country sustainability report.
  • Supports the request-for-information step and the statement required when the third-country undertaking does not provide necessary information.
Show 1 more
  • Supports the assurance opinion requirement and the statement required if the opinion is not provided.
"generated a net turnover in the Union exceeding EUR 450 000 000 for each of the last two consecutive financial years"
More quoted passages
"publish and make accessible a sustainability report"
"request the third-country undertaking to provide them with all information necessary"
"published accompanied by an assurance opinion"
Consolidated Directive 2013/34/EU, Articles 40a-40d
eur-lex.europa.eu2 citations
Referenced sections
  • Current consolidated source for Article 40a scope, the EU subsidiary and branch duties, missing-information statements, assurance opinions, and Article 40d publication timing.
  • Current consolidated text for the report-standard routes, accompanying documents, 12-month publication deadline, register publication, and free website access.
"Sustainability reports concerning third-country undertakings"
More quoted passages
"within 12 months of the balance sheet date"
Directive (EU) 2024/1306
data.europa.eu2 citations
Referenced sections
  • Source for the financial-year 2028 application point and the move of the third-country undertaking standards deadline to 30 June 2026.
  • Supports the financial-year 2028 application point for certain third-country undertakings.
"the date '30 June 2024' is replaced by '30 June 2026'"
More quoted passages
"applies only as of the financial year 2028"
European Commission FAQ on CSRD implementation
finance.ec.europa.eu2 citations
Referenced sections
  • Non-binding Commission interpretation of preparation responsibility, publication in each Member State, report-standard options, language, format, and the 12-month deadline.
  • Non-binding Commission guidance on who may prepare the report, the one-report-per-Member-State approach, and possible use of a link to another EU subsidiary or branch publication.
"The obligation to prepare the sustainability report does not explicitly fall on the EU subsidiary or branch."
More quoted passages
"at least one sustainability report be disclosed by one subsidiary or branch in each Member State"
Directive (EU) 2026/470
eur-lex.europa.eu
Referenced sections
  • Binding amending Directive for the EUR 200 million subsidiary and branch tests, the EUR 450 million Union-turnover test, the financial-holding derogation, and the 19 March 2027 transposition deadline.
"EUR 200 000 000 in the preceding financial year"

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