Large non-EU companies covered by the EU's Corporate Sustainability Reporting Directive (CSRD) must report from 2029, on financial year 2028. Their draft standard, ESRS-40a, was released in July 2026. It covers only a company's impacts, not its risks and opportunities, and leaves out EU Taxonomy disclosures.
The draft also offers a "mixed approach": non-EU companies could report non-climate impacts either globally or only for their "EU-related" activities. The EU Platform on Sustainable Finance and Eurosif, the European responsible investment body, have asked EFRAG to drop this. The Platform said it "would weaken comparability, create an uneven playing field" between EU and non-EU firms. EFRAG members warned that "relevant information may be lost, with a consequential risk of greenwashing".
Why it matters for Indian companies
Large Indian groups with big EU sales may fall under these rules. Whatever the final version, investors are signalling that they want global, comparable data, not an EU-only slice.
Source: ESG Today · 2026-10-28