{"id":3278,"date":"2026-08-17T15:44:51","date_gmt":"2026-08-17T14:44:51","guid":{"rendered":"https:\/\/cleeritesg.com\/?p=3278"},"modified":"2026-08-17T15:44:51","modified_gmt":"2026-08-17T14:44:51","slug":"public-consultation-on-esrs-40a-for-non-eu-undertakings-with-significant-eu-market-activity","status":"publish","type":"post","link":"https:\/\/cleeritesg.com\/index.php\/2026\/08\/17\/public-consultation-on-esrs-40a-for-non-eu-undertakings-with-significant-eu-market-activity\/","title":{"rendered":"Public consultation on ESRS-40a for non-EU undertakings with significant EU market activity"},"content":{"rendered":"

Have your say on ESRS-40a for non-EU undertakings with significant EU market activity<\/strong><\/h3>\n

On July 23 EFRAG launched a 100-day public consultation on the Exposure Draft of the European Sustainability Reporting Standards (ESRS-40a ED) for certain non-EU undertakings, developed under Article 40a of the Accounting Directive.<\/p>\n

All interested stakeholders are invited, both within and outside the EU, to share their views before 31 October, including on the practical implementation challenges and the relevance of the resulting disclosures.<\/p>\n

The objective of the ESRS-40a sustainability report, taken as whole, is to present fairly all the parent undertaking or group\u2019s material sustainability-related impacts, and how the parent undertaking or group manages them.<\/p>\n

The aim is to ensure that there is a level playing field for undertakings operating in the EU market, as well as to ensure transparency on impacts on people and the environment of non-EU undertakings with relevant EU activities.<\/p>\n

ESRS-40a standards were previously denominated in EFRAG preliminary documents as Non-EU ESRS (N-ESRS) or ESRS for third countries (ESRS-TC). By naming the standard ESRS\u201140a, EFRAG makes the legal anchor visible and unambiguous. This reinforces that it is not a separate framework, but a CSRD\u2011mandated ESRS standard.<\/p>\n

Click here to access the standard: ESRS-40a_Exposure_Draft.pdf<\/a><\/p>\n

Click here to submit your feedback: EFRAG Launches Public Consultation on the ESRS-40a Exposure Draft for Certain Non-EU Undertakings | EFRAG<\/a><\/p>\n

\n

Who will be in-scope?<\/strong><\/h3>\n

Non\u2011EU groups with >\u20ac450M EU turnover and at least one EU subsidiary or branch with >\u20ac200M EU turnover (no employee threshold) will need to publish an ESRS-40a sustainability report targeting financial years starting on or after January 1, 2028.<\/p>\n

Around 1,200 companies are expected to fall in scope, including 350\u2013450 US groups and 150\u2013200 UK groups.<\/p>\n

ESRS-40a is an impact\u2011only standard<\/strong><\/h3>\n

Disclosures on risks, opportunities, financial effects and resilience are removed, because Article 40a legally limits the EU to requiring transparency on impacts on people and the environment (IFRS S1\/S2 cover financial risks). However, companies may still include financial information when needed to explain. This is the core design choice: ESRS-40a = ESRS minus the financial\u2011materiality.<\/p>\n

12 ESRS\u2011aligned standards<\/strong><\/h3>\n

The standard requires disclosures across 12 ESRS\u2011aligned standards, covering strategy, governance, policies, targets, due diligence, impacts, actions and metrics.<\/p>\n

Groups can choose between three reporting perimeters:<\/p>\n

    \n
  • Global (default) \u2014 report global impacts for all topics<\/li>\n
  • Mixed \u2014 EU\u2011related impacts only (but climate-related impacts are always global),<\/li>\n
  • Full ESRS \u2014 voluntary, enabling subsidiary exemption if the non\u2011EU parent applies full ESRS<\/li>\n<\/ul>\n

    When assessing EU-related impacts, the following are examples of factors that the undertaking may consider:<\/p>\n

      \n
    • (a) existence of a separate business segment dedicated to serving the EU market;<\/li>\n
    • (b) products or services specifically designed for the EU-market;<\/li>\n
    • (c) separate management of EU-related impacts; or<\/li>\n
    • (d) value chains dedicated to products and services that were or can be reasonably assumed to be sold or provided in the EU market.<\/li>\n<\/ul>\n

      Timeline<\/strong><\/h3>\n

      Exposure Draft mid\u2011July 2026, consultation until October, technical advice in January 2027, adoption mid\u20112027, first reports published in 2029 (on FY 2028).<\/p>\n

      ESRS-40a will reshape sustainability reporting for non\u2011EU groups with significant activities in the EU. Impact transparency becomes mandatory, global climate data collection will be essential, and early preparation is key.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Have your say on ESRS-40a for non-EU undertakings with significant EU market activity On July 23 EFRAG launched a 100-day public consultation on the Exposure Draft of the European Sustainability Reporting Standards (ESRS-40a ED) for certain non-EU undertakings, developed under Article 40a of the Accounting Directive. All interested stakeholders are invited, both within and outside […]<\/p>\n","protected":false},"author":1,"featured_media":3279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,5],"tags":[],"class_list":["post-3278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-csrd","category-esrs","post-with-thumbnail","post-with-thumbnail-large"],"_links":{"self":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/comments?post=3278"}],"version-history":[{"count":2,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3278\/revisions"}],"predecessor-version":[{"id":3281,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/posts\/3278\/revisions\/3281"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/media\/3279"}],"wp:attachment":[{"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/media?parent=3278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/categories?post=3278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cleeritesg.com\/index.php\/wp-json\/wp\/v2\/tags?post=3278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}