What is the annual turnover of the undertaking?

Annual turnover is one of the three CSRD threshold values

The annual turnover requested in questionnaires is usually the net turnover as stated in the most recently established financial statements. The amount itself is not an end in itself: contracting parties use it to determine whether their supply chain is affected by the CSRD thresholds, together with the number of employees and the balance sheet total. Directive (EU) 2022/2464 sets out three criteria side by side — turnover, balance sheet total and number of employees — and an undertaking falls under the reporting obligation if two of the three limits are exceeded. Those completing the questionnaire do not therefore need to determine for themselves whether they are subject to the CSRD; they simply provide the figure, and the requesting party draws the conclusion.

In practice, the turnover for the most recently completed financial year is requested, sometimes broken down by country or by activity if the customer requires this for their own reporting on the supply chain. Doubt arises especially in groups: should the turnover of the holding company be provided or only that of the subsidiary that supplies? Without a consolidated financial statement at hand, it is difficult to answer with certainty, and in that case the answer "no, not yet confirmed" is a valid intermediate step until the correct figure is found. This subject is often linked to how many employees the undertaking has, because both figures together determine the size of the undertaking that contracting parties use to define the scope of their own supply chain reporting.

Where the threshold values are set out in the directive

Directive (EU) 2022/2464 amends the size criteria for large and medium-sized undertakings and links the reporting obligation to those criteria, including net turnover. For those supplying in the supply chain of a reporting undertaking, this is usually the reason why the question about annual turnover appears together with questions about the number of countries in which the undertaking has establishments: the contracting party must map its own supply chain and take into account the size of each supplier in it.