On February 19, the National Assembly decided to postpone the adoption of mandatory sustainability reporting for companies in Bulgaria by one year. Last year, Bulgaria introduced changes to the Accounting Act, which reflect the requirements of the European Directive 2022/2464. According to it, from 2025, companies with more than 500 employees must submit special non-financial reports along with their financial reports for 2024.

What are the plans of the European Commission and the opinions of other countries facing the implementation of CSRD?

The European Commission plans to reduce the number of companies that will have to report on sustainability under EU rules in a bid to cut red tape for businesses. The move is part of a plan to simplify environmental rules to be published in the coming days. The aim is to improve the competitiveness of local industries and deliver on promises to cut regulation.

EU member states have different opinions on this issue. Germany and France are pushing for a relaxation of environmental reporting rules, with Germany even asking for a two-year postponement of the new requirements. France, on the other hand, has asked for a postponement of the verification rules and an extension of the deadline for the implementation of the new Corporate Sustainability Report (CSRD) by two years. On the other hand, Spain is pushing for the rules to be postponed only for small companies, but to become mandatory for all companies after that deadline. Italy, on the other hand, is against any postponements and is pushing for the rules to be implemented for all companies without delay.

The European Commission’s project foresees that from 2025 only companies with more than 1,000 employees and a turnover of more than €450 million will be required to follow the new reporting requirements, thus reducing the number of companies affected. The rules currently apply to companies with more than 250 employees and a turnover of more than €40 million. It also cancels plans to introduce sector-specific reporting standards.

The project also calls for a delay in the Supply Chain Due Diligence Act (CSDDD), which requires large companies to inspect their supply chains for human rights and environmental issues. Under the new plans, companies would only have to conduct in-depth checks on their direct partners and subsidiaries, excluding subcontractors and suppliers.

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