Undertakings that on their balance sheet date exceed a net turnover of EUR 450,000,000 and an average of 1,000 employees during the financial year must include in their management report, in a dedicated section, information necessary to understand the undertaking's impacts on sustainability matters and how those matters affect its development, performance and position. Required disclosures include a description of the business model and strategy (resilience to sustainability risks, opportunities, transition plans aligned with the Paris Agreement and climate neutrality by 2050, and exposure to coal, oil and gas), stakeholder considerations, implementation of strategy, time‑bound targets (including where appropriate absolute GHG targets for 2030 and 2050 and whether environmental targets are science‑based), governance roles and expertise, policies, incentive schemes for governance bodies, due diligence processes, principal adverse impacts across operations and value chain, actions taken to prevent or remediate impacts, principal sustainability risks and dependencies, and relevant indicators; reporting must cover short, medium and long horizons and state the process used to identify included information.

Reporting undertakings must follow sustainability reporting standards adopted under Article 29b. Value‑chain information is required where applicable; reporting undertakings may rely on self‑declarations from undertakings in their value chain to identify protected undertakings (those with fewer than 1,000 employees) and must not require protected undertakings to provide information beyond voluntary standards, nor verify self‑declarations unless manifestly incorrect. Protected undertakings may decline such requests. For the first three years subject to the requirements, undertakings that lack full value‑chain information must explain efforts made, reasons for gaps and plans to obtain information; thereafter they must use direct data or estimates. Information may be omitted only in specified exceptional cases (serious prejudice to commercial position, trade secrets, classified information, or legal/privacy/security obligations), provided the omission is disclosed and reassessed each reporting date. Workers' representatives must be informed and consulted, and their opinion communicated to relevant governance bodies. Subsidiaries included in consolidated reporting that meets the standards or equivalent requirements are exempt from paragraphs 1–4 subject to prescribed disclosures (parent identity, links to consolidated reporting and assurance opinion) and additional conditions for third‑country parents; the exemption also applies to public‑interest entities.