Oleksiy Yatsiuk on New EU ESG Reporting Rules: What This Means for Ukrainian Businesses
The European Parliament has held a second vote on ESG directives and significantly raised the thresholds for companies required to report. These changes will have direct implications for Ukraine, as the country is adapting European directives as part of implementing the government's Sustainable Development Reporting Strategy.
Oleksiy Yatsiuk, ESG Expert at the Green Transition Office under the Ministry of Economy, Environment and Agriculture of Ukraine, explained the essence of the changes and their impact on Ukrainian business.
Following the vote, the European Parliament formed its position on the directives (the so-called Omnibus I package), which will now be brought to dialogue with the European Commission and the European Council. The key change concerns company criteria. The expert explained:
"The European Commission proposed raising the threshold for companies required to report to 1,000 employees. The European Parliament has now adopted a proposal to increase the threshold to companies with 1,750 employees and a turnover of 450 million euros."
Similar changes have affected the CSDDD (due diligence) directive: now only companies with 5,000 employees and 1.5 billion euros in turnover will be required to report. The criteria for taxonomy remain the same as before (criteria synchronized with CSRD). It's worth noting separately that the obligation to submit transition plans – documents on achieving carbon neutrality – applies only to companies covered by CSRD.
Commenting on the situation, Oleksiy Yatsiuk noted: "What is happening in the European Parliament now is actually one of the scenarios we anticipated. The Green Transition Office conducted research explaining the procedure in Europe, what this will mean for Ukrainian businesses, and how it will affect rules and legislative changes in Ukraine."
The expert emphasized the importance of these changes for Ukraine: the country is adapting European directives, and changes to Ukrainian legislation will take into account the criteria adopted by the EU. The Government of Ukraine will adopt the same criteria that are approved in Europe, while the Green Transition Office team monitors all changes and will provide detailed explanations of their impact on Ukrainian business.
The vote in the European Parliament didn't pass on the first attempt. The first vote on a more compromise version failed due to refusal by Social Democrats and Greens to support it. The text was adopted on the second attempt with support from far-right parties.
Next steps include dialogue between EU institutions and a final vote in autumn, after which changes to the directives and parallel updates to ESG reporting standards (ESRS) will occur. The Green Transition Office continues to analyze all changes and will prepare detailed explanations for Ukrainian businesses.
For a detailed understanding of changes in European directives and their impact on Ukrainian companies, we recommend reviewing the Green Transition Office study "ESG Standards and Requirements in the EU and Ukraine – Changes and What to Expect Next."
The Green Transition Office is an independent advisory body under the Ministry of Economy, Environment and Agriculture of Ukraine, helping to implement reforms in the areas of green transition, energy and climate policy in Ukraine. The Green Transition Office operates with financial support from UK Aid and is implemented by DiXi Group.
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