The sustainability statement duty and the value chain cap

What is the requirement, in plain English?

An undertaking above the two tests must put into its management report the information needed to understand its impacts on sustainability matters and how those matters affect its development, performance and position. Paragraph 3 sets the value chain cap: undertakings with fewer than 1 000 employees on average are not required to give information beyond the voluntary standards, and a reporting undertaking may not ask more of them than the Directive allows.

What evidence does a regulator or an auditor ask for?

The statement itself, the double materiality assessment behind it, and, for every value chain request, the reason the information is needed and the cap the request respects.

Which dates matter?

• Transposition of Articles 1, 2 and 3: 19 March 2027
• Voluntary reporting standards due: 19 July 2026

The transposition deadline for Articles 1 to 3 of the amending directive is 19 March 2027 (Article 5). For Article 4 it is 26 July 2028, applied from 26 July 2029.

What does it cross-reference?

• 2013/34/EU Article 29b
• new Article 29ca
• Commission Recommendation (EU) 2025/1710

How do I check a draft against this provision?

Paste your draft into the reading. The reading returns, per provision, whether a phrase specific to this requirement appears in your own words, quoted, with the article cited here. Where a line reaches nothing it reads no mapping identified.

Not legal advice; does not certify. Every field on this page carries its own source pointer, and the record is replayed by the pages, the check and the export from one reviewed record.