---
title: "CSRD Article 40a third-country group reporting FAQ"
canonical_url: "https://www.sorena.io/artifacts/eu/corporate-sustainability-reporting-directive/faq/third-country-groups"
source_url: "https://www.sorena.io/artifacts/eu/corporate-sustainability-reporting-directive/faq/third-country-groups"
author: "Sorena AI"
description: "FAQ on when CSRD Article 40a applies to third-country groups, which EU subsidiary or branch publishes the report, and what happens with assurance and missing information."
published_at: "2026-05-09"
updated_at: "2026-05-09"
keywords:
  - "CSRD Article 40a"
  - "third-country undertakings"
  - "third-country groups"
  - "EU subsidiary sustainability report"
  - "EU branch sustainability report"
  - "assurance opinion"
  - "CSRD"
  - "Article 40a"
  - "EU subsidiaries"
  - "EU branches"
  - "sustainability reporting"
---
**[SORENA](https://www.sorena.io/)** - AI-Powered GRC Platform

[Home](https://www.sorena.io/) | [Solutions](https://www.sorena.io/solutions) | [Artifacts](https://www.sorena.io/artifacts) | [About Us](https://www.sorena.io/about-us) | [Contact](https://www.sorena.io/contact) | [Portal](https://app.sorena.io)

---

# CSRD Article 40a third-country group reporting FAQ

FAQ on when CSRD Article 40a applies to third-country groups, which EU subsidiary or branch publishes the report, and what happens with assurance and missing information.

*FAQ* *CSRD Article 40a* *EU*

## CSRD third-country group reporting Article 40a FAQ

Article 40a is the CSRD route for certain non-EU parent groups with significant EU turnover and an EU subsidiary or branch.

Use this FAQ to identify the reporting trigger, publication route, assurance file, missing-information statement, and 2028 application point without relying on unsupported threshold guesses.

CSRD Article 40a concerns sustainability reports for third-country undertakings. In practice, the EU publication obligation sits with an EU subsidiary or, where the third-country undertaking has no qualifying EU subsidiary, an EU branch that meets the Article 40a conditions. Timings in this page are source-linked; verify current legal source language before implementation decisions.

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

Article 40a applies only when both the non-EU group trigger and an EU presence trigger are met. The third-country undertaking must generate more than EUR 150 million net turnover in the Union at group level, or individual level if group reporting is not applicable, for each of the last two consecutive financial years.

The EU presence must be either a qualifying EU subsidiary or, if there is no such subsidiary, an EU branch. For a branch route, the branch must have generated more than EUR 40 million net turnover in the preceding financial year. Directive 2024/1306 describes the reporting requirement for certain third-country undertakings as applying only as of financial year 2028.

- Check the third-country undertaking's EU net turnover for each of the last two consecutive financial years.
- Identify whether the group has an EU subsidiary that is a large undertaking or a listed SME that is not a micro-undertaking.
- Use the branch route only where the third-country undertaking does not have a qualifying EU subsidiary and the EU branch passes the branch turnover condition.
- Do not use Article 40a threshold numbers in public copy or internal scoping unless they are tied back to the current Accounting Directive text.

Sources for this answer:

- [Consolidated Directive 2013/34/EU, Article 40a](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013L0034-20240528&ref=sorena.io) - Supports the Article 40a scope triggers for third-country undertakings, EU subsidiaries, EU branches, and EU net turnover.
- [Directive (EU) 2024/1306](https://data.europa.eu/eli/dec/2024/1306/oj?ref=sorena.io) - Supports the financial-year 2028 application point for reporting by certain third-country undertakings.

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

The Article 40a report is not published directly by every entity in the non-EU group. Member States must require the qualifying EU subsidiary to publish and make accessible the sustainability report for the ultimate third-country parent at group level.

If the third-country undertaking has no qualifying EU subsidiary, the branch route can apply. The EU branch then publishes and makes accessible the report at the third-country undertaking's group level, or at individual level if group-level reporting is not applicable.

- For a qualifying EU subsidiary, confirm the subsidiary category before assigning publication responsibility.
- For a branch, confirm there is no qualifying EU subsidiary before relying on the branch route.
- Record the reporting perimeter: ultimate third-country parent group level, or individual third-country undertaking level where group-level reporting is not applicable.
- Keep the publication owner separate from data owners in the non-EU parent group so the EU entity can evidence its Article 40a role.

Sources for this answer:

- [Consolidated Directive 2013/34/EU, Article 40a](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013L0034-20240528&ref=sorena.io) - Supports which EU subsidiary or branch must publish and make accessible the third-country sustainability report.

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

Article 40a does not let the EU subsidiary or branch stay silent because the third-country undertaking 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 third-country undertaking did not make the necessary information available.

- Keep the information request sent to the third-country undertaking.
- Preserve the response, non-response, or partial data package received from the third-country undertaking.
- Prepare the Article 40a 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.

Sources for this answer:

- [Consolidated Directive 2013/34/EU, Article 40a](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013L0034-20240528&ref=sorena.io) - Supports the request-for-information step and the statement required when the third-country undertaking does not provide necessary information.

## Is an assurance opinion required for Article 40a reports?

Yes. Member States must require the Article 40a sustainability report to be published with an assurance opinion from a person or firm authorised to give an opinion on sustainability reporting assurance under the law of the third-country undertaking or of a Member State.

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

- Identify whether the assurance opinion comes from a person or firm authorised under third-country law or Member State law.
- Keep the final assurance opinion with the report publication file.
- If the opinion is missing, prepare the Article 40a statement rather than omitting the assurance issue.
- Check Article 40d publication timing because the report, assurance opinion, and any required statement travel together.

Sources for this answer:

- [Consolidated Directive 2013/34/EU, Article 40a](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013L0034-20240528&ref=sorena.io) - Supports the assurance opinion requirement and the statement required if the opinion is not provided.

## When does the Article 40a third-country reporting route start?

Directive (EU) 2024/1306 says the reporting requirement for certain third-country undertakings applies only as of the financial year 2028. Use that application point for the route, but keep the Article 40a scope test and the publication deadline separate in internal scoping.

Sources for this answer:

- [Directive (EU) 2024/1306](https://data.europa.eu/eli/dec/2024/1306/oj?ref=sorena.io) - Supports the financial-year 2028 application point for certain third-country undertakings.

## Primary sources

- [Consolidated Directive 2013/34/EU, Articles 40a-40d](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013L0034-20240528&ref=sorena.io) - Primary source for Article 40a third-country undertaking scope, EU subsidiary and branch publication duties, missing-information statements, assurance opinions, and Article 40d publication timing.
  - Quote: "Sustainability reports concerning third-country undertakings"
- [Directive (EU) 2024/1306](https://data.europa.eu/eli/dec/2024/1306/oj?ref=sorena.io) - Source for the financial-year 2028 application point and the move of the third-country undertaking standards deadline to 30 June 2026.
  - Quote: "the date '30 June 2024' is replaced by '30 June 2026'"

## Topic Guides

- [CSRD and ESRS Compliance Obligations](/artifacts/eu/corporate-sustainability-reporting-directive/compliance.md): Grounded CSRD and ESRS compliance guide covering scope checks, sustainability statements, double materiality, value-chain data, assurance, and digital tagging.
- [CSRD and ESRS FAQ: scope, materiality, assurance, tagging, and value chain](/artifacts/eu/corporate-sustainability-reporting-directive/faq.md): CSRD and ESRS FAQ hub covering company scope, reporting waves, ESRS structure, double materiality, assurance, digital tagging, Taxonomy Article 8, and value chain data.
- [CSRD and ESRS Reporting Checklist](/artifacts/eu/corporate-sustainability-reporting-directive/checklist.md): A practical CSRD and ESRS checklist for confirming reporting scope, sustainability statement content, double materiality, value-chain evidence, assurance readiness, and digital tagging.
- [CSRD and ESRS requirements: scope, reporting, assurance, and evidence](/artifacts/eu/corporate-sustainability-reporting-directive/requirements.md): Grounded guide to CSRD and ESRS requirements: who reports, what the sustainability statement must cover, double materiality, value-chain data, assurance, publication, digital tagging, and controls.
- [CSRD and ESRS value-chain data, estimates, proxies, and evidence](/artifacts/eu/corporate-sustainability-reporting-directive/value-chain-data-and-estimation.md): How to handle ESRS value-chain information when supplier or customer data is incomplete: reasonable efforts, estimates, limitations, controls, and assurance evidence.
- [CSRD Applicability Test for EU and Non-EU Company Groups](/artifacts/eu/corporate-sustainability-reporting-directive/applicability-test.md): Check whether CSRD and ESRS reporting may apply by testing undertaking size, listed status, group reporting, non-EU branches or subsidiaries, and phase-in evidence.
- [CSRD assurance and ESRS digital tagging evidence](/artifacts/eu/corporate-sustainability-reporting-directive/assurance-and-digital-tagging-evidence.md): Evidence checklist for CSRD assurance readiness, ESRS datapoint traceability, and digital tagging preparation under the ESRS XBRL and ESEF reporting framework.
- [CSRD assurance evidence FAQ: what to keep for limited assurance](/artifacts/eu/corporate-sustainability-reporting-directive/faq/assurance-evidence.md): What CSRD and ESRS assurance evidence should support: management-report publication, the assurance report, national assurance procedures, and EU limited assurance milestones.
- [CSRD assurance evidence pack workflow for ESRS reporting](/artifacts/eu/corporate-sustainability-reporting-directive/assurance-evidence-pack-workflow.md): A CSRD and ESRS workflow for building an assurance-ready evidence pack covering scope, double materiality, ESRS datapoints, controls, estimates, and digital tagging.
- [CSRD assurance-ready controls and evidence for ESRS reporting](/artifacts/eu/corporate-sustainability-reporting-directive/assurance-ready-controls-and-evidence.md): Build CSRD and ESRS evidence around GOV-5 controls, double materiality, IROs, value-chain data, assurance files, and XBRL tagging checks.
- [CSRD data point inventory FAQ for ESRS disclosure readiness](/artifacts/eu/corporate-sustainability-reporting-directive/faq/data-point-inventory.md): How to build an ESRS data point inventory for CSRD reporting: disclosure requirements, materiality filters, evidence ownership, value-chain data, XBRL readiness, and assurance support.
- [CSRD deadlines and ESRS compliance calendar](/artifacts/eu/corporate-sustainability-reporting-directive/deadlines-and-compliance-calendar.md): A grounded CSRD and ESRS calendar covering the original reporting waves, enacted postponement caveats, publication duties, assurance, and digital reporting workstreams.
- [CSRD digital tagging and XBRL readiness FAQ](/artifacts/eu/corporate-sustainability-reporting-directive/faq/digital-tagging-xbrl.md): What CSRD teams should do now about XHTML, Inline XBRL, ESRS taxonomy materials, tagging controls, and limits before final digital taxonomy rules apply.
- [CSRD Double Materiality Interview Question Bank for ESRS](/artifacts/eu/corporate-sustainability-reporting-directive/double-materiality-interview-question-bank.md): Interview prompts for ESRS double materiality work: context, affected stakeholders, value chain IROs, impact materiality, financial materiality, thresholds, and evidence.
- [CSRD double materiality method under ESRS](/artifacts/eu/corporate-sustainability-reporting-directive/double-materiality-method.md): A grounded method for ESRS double materiality assessment: impact materiality, financial materiality, value-chain coverage, thresholds, evidence, and documentation.
- [CSRD double materiality scoring: IRO assessment and ESRS data points](/artifacts/eu/corporate-sustainability-reporting-directive/double-materiality-scoring.md): A grounded scoring guide for CSRD and ESRS double materiality: impact materiality, financial materiality, thresholds, evidence, governance, and disclosure mapping.
- [CSRD Double Materiality Workflow for ESRS Assessment](/artifacts/eu/corporate-sustainability-reporting-directive/double-materiality-workflow.md): A CSRD and ESRS workflow for running a double materiality assessment, from value-chain scoping and stakeholder inputs to IRO scoring, governance approval, and audit trail evidence.
- [CSRD omnibus stop-the-clock status: enacted delay vs proposed scope changes](/artifacts/eu/corporate-sustainability-reporting-directive/faq/omnibus-stop-the-clock-status.md): FAQ on the CSRD stop-the-clock directive, the separate Omnibus proposal, and how reporting teams should treat enacted and proposed changes.
- [CSRD penalties and fines: Member State enforcement, controls, and evidence](/artifacts/eu/corporate-sustainability-reporting-directive/penalties-and-fines.md): A conservative guide to CSRD penalty exposure: why fines depend on Member State implementation, which reporting failures create risk, and what evidence teams should keep.
- [CSRD reporting waves and Omnibus status](/artifacts/eu/corporate-sustainability-reporting-directive/reporting-waves-and-omnibus-status.md): Track what is enacted, postponed, final, or still in the Omnibus process for CSRD reporting waves, ESRS reporting, and Stop-the-Clock changes.
- [CSRD reporting waves FAQ: who reports first and what changed](/artifacts/eu/corporate-sustainability-reporting-directive/faq/reporting-waves.md): FAQ on original CSRD reporting waves, stop-the-clock caveats, listed SME opt-out, third-country reporting, and why local transposition law still matters.
- [CSRD scope and phasing by company type](/artifacts/eu/corporate-sustainability-reporting-directive/scope-and-phasing-by-company-type.md): Map CSRD reporting scope by company category, original Article 5 wave, listed SME opt-out, third-country group rules, and stop-the-clock caveats.
- [CSRD topical ESRS scoping: what must be reported?](/artifacts/eu/corporate-sustainability-reporting-directive/faq/topical-esrs-scoping.md): FAQ on CSRD topical ESRS scoping: ESRS 2, double materiality, topical disclosure requirements, omitted topics, climate, and Appendix B datapoints.
- [CSRD value chain data and estimation methodology under ESRS](/artifacts/eu/corporate-sustainability-reporting-directive/value-chain-estimates.md): How ESRS lets CSRD reporters use sector averages, proxies, and other estimates when direct value-chain data is not available after reasonable effort.
- [CSRD vs CSDDD: Reporting vs Due Diligence](/artifacts/eu/corporate-sustainability-reporting-directive/csrd-vs-csddd.md): Compare CSRD sustainability reporting with CSDDD human rights and environmental due diligence, including scope, evidence, assurance, penalties, and overlap.
- [CSRD vs EU Taxonomy Article 8](/artifacts/eu/corporate-sustainability-reporting-directive/csrd-vs-taxonomy-alignment.md): Compare CSRD and ESRS sustainability reporting with EU Taxonomy Article 8 KPI disclosures, including scope, evidence, tagging, and reuse limits.
- [CSRD vs GRI: ESRS Interoperability](/artifacts/eu/corporate-sustainability-reporting-directive/csrd-vs-gri.md): Compare CSRD/ESRS reporting with GRI-based reporting using grounded ESRS interoperability, materiality, value-chain, and disclosure-reuse rules.
- [CSRD vs IFRS S1 and S2 Comparison](/artifacts/eu/corporate-sustainability-reporting-directive/csrd-vs-ifrs-s1-and-s2.md): Compare CSRD and ESRS with IFRS S1 and S2 across scope, materiality, disclosures, value chain reporting, assurance, digital tagging, and interoperability.
- [CSRD vs SEC Climate Disclosure Rule](/artifacts/eu/corporate-sustainability-reporting-directive/csrd-vs-sec-climate-disclosure-rule.md): Grounded comparison notes for CSRD and the SEC climate disclosure rule, focused on CSRD and ESRS duties and conservative limits where SEC facts are not sourced.
- [CSRD vs SFDR: ESRS and Financial Disclosures](/artifacts/eu/corporate-sustainability-reporting-directive/csrd-vs-sfdr.md): Compare CSRD/ESRS corporate sustainability reporting with SFDR financial-market disclosures, including scope, materiality, PAI data, assurance, tagging, and reuse limits.
- [CSRD XBRL Tagging Checklist for ESRS and Article 8 Readiness](/artifacts/eu/corporate-sustainability-reporting-directive/xbrl-tagging-checklist.md): A grounded CSRD XBRL tagging readiness checklist for XHTML, Inline XBRL, ESRS taxonomy mapping, Article 8 taxonomy mapping, ESEF validation, and source-controlled review.
- [ESRS 1 and ESRS 2 structure under CSRD](/artifacts/eu/corporate-sustainability-reporting-directive/esrs-1-and-esrs-2-structure.md): A grounded explanation of how ESRS 1 sets the reporting architecture and how ESRS 2 provides the mandatory general disclosures for CSRD sustainability statements.
- [ESRS data point inventory workflow for CSRD reporting](/artifacts/eu/corporate-sustainability-reporting-directive/esrs-data-point-inventory-workflow.md): Build an ESRS data point inventory that links disclosure requirements, materiality outcomes, evidence owners, XBRL tagging readiness, and assurance controls.
- [ESRS structure and data model for CSRD reporting](/artifacts/eu/corporate-sustainability-reporting-directive/esrs-structure-and-data-model.md): Map ESRS architecture, disclosure requirements, datapoints, materiality, XBRL taxonomy, Article 8 tagging, and report data ownership for CSRD reporting.
- [FAQ: CSRD double materiality scoring — thresholds, weighting, and evidence](/artifacts/eu/corporate-sustainability-reporting-directive/faq/double-materiality-scoring.md): How to score CSRD double materiality under ESRS without invented thresholds: impact materiality, financial materiality, evidence, and documentation.
- [FAQ: CSRD value chain estimates — methods and proportionality under ESRS](/artifacts/eu/corporate-sustainability-reporting-directive/faq/value-chain-estimates.md): When ESRS permits value chain estimates, what to disclose about assumptions, accuracy, limits, and improvement plans.
- [How do ESRS 1 and ESRS 2 structure CSRD reporting?](/artifacts/eu/corporate-sustainability-reporting-directive/faq/esrs-1-and-2-structure.md): FAQ explaining how ESRS 1 general requirements and ESRS 2 general disclosures fit into CSRD reporting, materiality, and topical ESRS disclosures.
- [LSME and VSME under EU CSRD: what SMEs should know](/artifacts/eu/corporate-sustainability-reporting-directive/faq/lsme-and-vsme.md): FAQ on LSME and VSME under the EU CSRD: listed SME reporting, the temporary opt-out, voluntary SME reporting, and value-chain requests.
- [Taxonomy Article 8 KPIs for CSRD reporting](/artifacts/eu/corporate-sustainability-reporting-directive/taxonomy-article-8-kpis.md): Grounded guide to Article 8 Taxonomy KPI disclosures in CSRD sustainability statements, including KPI templates, ESRS links, XBRL readiness, and evidence controls.
- [Taxonomy Article 8 KPIs under CSRD and ESRS](/artifacts/eu/corporate-sustainability-reporting-directive/faq/taxonomy-article-8-kpis.md): FAQ explaining how EU Taxonomy Article 8 KPI disclosures relate to CSRD, ESRS, and the Article 8 XBRL taxonomy.

*Recommended next step*

*Placement: after Article 40a evidence section*

## 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.

- [Open Research Copilot](/solutions/research-copilot.md): Answer CSRD Article 40a questions with cited source material.
- [Discuss CSRD reporting scope](/contact.md): Review third-country group scope, report publication, and assurance evidence with Sorena.


---

[Privacy Policy](https://www.sorena.io/privacy) | [Terms of Use](https://www.sorena.io/terms-of-use) | [DMCA](https://www.sorena.io/dmca) | [About Us](https://www.sorena.io/about-us)

(c) 2026 Sorena AB (559573-7338). All rights reserved.

Source: https://www.sorena.io/artifacts/eu/corporate-sustainability-reporting-directive/faq/third-country-groups