Draft Law On Sustainable Development Reporting

On 26 June 2025, the Verkhovna Rada registered Draft Law No. 13425, which, in particular, proposes to introduce mandatory preparation, submission and publication of sustainability reports for certain categories of enterprises.

Such reporting will include information on the company’s impact on the environment, social issues, labor relations, human rights, anti-corruption activities, and how these issues affect the company’s operations.

Sustainability information will be presented in accordance with European Sustainability Reporting Standards (ESRS) as a separate section of the management report. It will be submitted in a single electronic format according to a taxonomy that will simplify analysis and access to information.

After being adopted by the Verkhovna Rada, the Draft Law will come into force on 01 January 2026, as it is related to Ukraine’s obligation to implement the provisions of Commission Delegated Directive (EU) 2023/2775 of 17 October 2023 amending Directive 2013/34/EU of the European Parliament and of the Council as regards the adjustment of size criteria for micro, small and medium-sized and large enterprises or groups and to carry out preparatory measures for the introduction of sustainability reporting.

The first reporting period for which companies submit sustainability reports in accordance with the sustainability reporting standards will be:

  • for large companies with an average number of employees exceeding 500 in the year preceding the reporting year – 2027;
  • for parent companies of large groups with an average number of employees exceeding 500 on a consolidated basis in the year preceding the reporting year – 2027;
  • for large companies and parent companies of large groups, except those mentioned above – 2028;
  • for small and medium-sized companies whose securities are admitted to trading on the regulated capital market – 2029.

Small and medium-sized enterprises whose securities are not admitted to trading on a regulated capital market independently determine the feasibility of preparing sustainability reports.

For the purposes of preparing sustainability reports, companies shall apply the criteria set forth in the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” to determine its category (small, medium or large).

We will closely monitor further developments in the status of this Draft Laws and report on them in future Legal News.