Romanian companies to implement sustainable reporting practices in 2025

Green Forum
The Corporate Sustainability Reporting Directive (CSRD), officially known as Directive (EU) 2022/2464, has been incorporated into Romanian legislation through the Ministry of Finance, as of January 26th. 2025 marks the inaugural year for reporting among Romanian companies. The scope of companies subject to reporting obligations has significantly expanded, along with the magnitude of requirements they must fulfill. 

”This legislative advance underscores Romania's proactive stance in fostering responsible business practices and ensuring that environmental, social, and governance (ESG) considerations are integrated into corporate decision-making processes. By embracing the CSRD, Romania is not only strengthening its economic resilience but also fostering a more sustainable and equitable future for its citizens and the global community alike”, mentioned Răzvan Butucaru, Partner, Financial Services & Advisory Leader, Mazars in Romania.

Nevertheless, considering the many requirements, companies must prioritize initiating the implementation process promptly. To allow companies time to prepare, the transition to the new reporting requirements will occur in phases.

Hence, companies currently adhering to OMF 1802/2014 or OMF 2844/2016 accounting standards will commence sustainability disclosures as follows:

Reporting in 2025 (for the financial year 2024):

  • Medium and large public-interest companies with an average of more than 500 employees during the fiscal year.
  • Public-interest parent companies of large groups, averaging over 500 employees on a consolidated basis at the balance sheet date.

Reporting in 2026 (for the financial year 2025):

  • Medium and large-scale companies are not classified as public-interest entities.
  • Parent companies of large groups that are non-public-interest entities.

Reporting in 2027 (for the financial year 2026):

  • Companies listed on regulated markets do not meet the size criteria for reporting in 2024 and 2025.

Reporting in 2029 (for the financial year 2028):

  • Based on specific size requirements, Romanian branches or subsidiaries of non-EU parent companies, are required to publish information disclosures about their parent company/group.

The CSRD obligations encompass both medium and large-scale companies. Classification is based on exceeding at least two of the following three criteria at the balance sheet date:

Total assets: over €3.95 million
Net turnover: over €7.89 million
Average number of employees during the financial year: 50.

Large groups are identified by parent and subsidiary companies meeting at least two of the following criteria on a consolidated level at the parent's balance sheet date:

Assets exceeding RON 105 million (€~23.68 million).
Sales surpassing RON 210 million (€~47.36 million).
Average number of employees during the financial year: above 250.

"The sustainability report will undergo mandatory specific audit to ensure its accuracy and reliability. Non-listed companies within a consolidated group reporting in the European Union or a third country may qualify for exemption from individual sustainability reporting in Romania, provided certain conditions are met. The implementation of these regulatory requirements will impact not only the reporting process but also the entire business model and strategy of companies," remarked Laura Negrișoiu, Sustainability Director at Mazars in Romania.

Green Forum  |  23 April, 2024 at 11:00 AM