CSRD: Dutch government drops retroactive reporting duty for "first-wave" companies
Plans to apply the Corporate Sustainability Reporting Directive (CSRD) retroactively to "first wave" companies from the 2024 financial year will be removed from the implementing legislation. This follows two years of uncertainty caused by delays in the CSRD implementation process in the Netherlands.
Earlier today, the Dutch Council of Ministers decided to remove the retroactive effect from the CSRD implementation proposals following a critical advisory opinion by the Dutch Council of State (see our June 2026 article).
What this means
Under the CSRD and the now abandoned plan to apply it retroactively to cover the period lost to delayed implementation, large public-interest entities and other large issuers with more than 500 employees would have had to report in line with the CSRD and related sustainability reporting standards from the 2024 financial year onwards.
With retroactive implementation off the table, and in line with the revised scope and timelines under the Omnibus Directive, the CSRD will instead apply from the 2027 financial year. From this moment, the reporting rules will need to be followed by European companies and issuers with a net turnover exceeding EUR 450 million and an average of 1,000 employees on the balance sheet date. See our flowchart for the relevant scope and timelines.
Companies in scope need to report in line with the revised sustainability reporting standards published on 21 September 2026.
Next steps
The CSRD implementing bill remains pending in the Dutch lower house, where the Minister of Finance will submit the amendments and a supplementary report. The State Secretary for Justice and Security will submit the draft implementing decree to parliament for prior consultation, then refer it to the Advisory Division of the Council of State for advice, provided that the consultation does not result in any substantial amendments.
Besides removing the retroactive effect and accompanying repair clause from the CSRD implementing drafts, these changes will implement the Omnibus Directive (see our December 2025 article). It remains to be seen if the March 2027 deadline for implementation of the Omnibus Directive will be met.
Please reach out to your regular De Brauw contact or any of the experts listed below to discuss what this means for you.