Amendments to the Law on Sustainability Disclosures regarding application dates have been adopted

The amendments are relevant for two groups of companies:

• large companies shall prepare such a report starting from the reporting year 2027
• listed small and medium-sized companies shall prepare such a report starting from the reporting year 2028.

The amendments have been published in the Official Journal Latvijas Vēstnesis and will enter into force on October 24, 2025.

These amendments are part of broader EU-wide changes in sustainability reporting. The changes are expected to simplify the requirements for preparing sustainability reports and narrow the range of companies that must prepare such reports in accordance with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS).

The European Council, Parliament and Commission align on the opinion that the employee threshold for mandatory sustainability reporting should be raised from the current 250 to 1,000. However, regarding the turnover threshold, the European Commission wants to keep it at the current level of €50 million, while the European Parliament proposes raising it to €450 million. The final tripartite negotiations on the reporting scope criteria are expected to take place at the end of 2025.

Need support in preparing or auditing your sustainability report? Reach out to us at info@orients.lv — we’re here to help.