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Commission Notice on the interpretation of certain legal provisions in Directive 2013/34/EU (Accounting Directive), Directive 2006/43/EC (Audit Directive), Regulation (EU) No 537/2014 (Audit Regulation), Directive 2004/109/EC (Transparency Directive), Delegated Regulation (EU) 2023/2772 (first set of European Sustainability Reporting Standards, ‘first ESRS delegated act’), and Regulation (EU) 2019/2088 (Sustainable Finance Disclosures Regulation, ‘SFDR’) as regards sustainability reporting · European Union

| 88) | Pending a Commission decision on the equivalence of third-country sustainability standards, how can a third-country undertaking that is not required to report sustainability information under Union law allow its Union subsidiaries to be exempted from sustainability reporting under Articles 19a and 29a of the Accounting Directive? A third-country undertaking that is not required to report sustainability information under Union law and that wants to allow its Union subsidiaries to be exempted from sustainability reporting under Articles 19a and 29a of the Accounting Directive may publish a consolidated sustainability statement prepared in accordance with ESRS. Alternatively, based on Article 48i(1) of the Accounting Directive, until financial years ending on 6 January 2030, Member States must allow a subsidiary governed by the law of a Member State that is subject to Articles 19a and 29a of the Accounting Directive and whose parent undertaking is governed by the law of a third-country to prepare and publish a consolidated sustainability statement under Article 29a of the Accounting Directive, that includes all Union direct or indirect subsidiary undertakings of such third-country parent undertaking that are subject to Articles 19a and 29a of the Accounting Directive. Article 48i(2) of the Accounting Directive specifies that the Union subsidiary undertaking preparing the consolidated sustainability reporting shall be one of the Union subsidiary undertakings of the group that generated the greatest turnover in the Union in at least one of the preceding five financial years, on a consolidated basis where applicable. Based on Article 48i(3) of the Accounting Directive, the preparation and publication of the consolidated sustainability statement prepared and published by the Union subsidiary referred to in Article 48i(1) of the Accounting Directive leads to the exemption from sustainability reporting of all undertakings included in the consolidation, provided that the conditions in Articles 19a(9) and 29a(8) are met.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07 · Text as adopted (Official Journal); later amendments are not incorporated in this text.