Act I of 2026 transposes EU Corporate Sustainability Reporting Directive 2022/2464 (CSRD) into Maltese law, amending the Companies Act (Ch. 386) and the Accountancy Profession Act (Ch. 281). Mandatory sustainability reporting is introduced in phased timelines: from 1 January 2026 for large public-interest entities with more than 500 employees and large parent groups; from 1 January 2027 for other large undertakings and groups; from 1 January 2028 for listed SMEs, small non-complex credit institutions and captive insurers. Exemptions apply to entities below two of three thresholds: €450,000 balance sheet, €900,000 turnover, 10 employees; also exempt are the Central Bank of Malta, Malta Development Bank, Alternative Investment Funds and UCITS. In-scope companies must include a sustainability statement within their directors' report covering: business model and sustainability strategy; climate transition plans aligned to 1.5°C and 2050 neutrality targets; time-bound targets with progress metrics; board-level sustainability expertise; due diligence processes and principal adverse impacts on people and environment. Reports must be prepared in ESEF digital format and independently assured on a limited assurance basis. Early adoption or retroactive application is prohibited. Entered into force 20 March 2026.

Corporate Sustainability Reporting (Act I of 2026)