What does net turnover mean?
Net turnover is the CSDDD financial threshold term used to determine whether companies fall within the Directive’s phased scope.
net turnover
A regulatory term referring to (i) the net turnover, as defined in Article 2, point (5), of Directive 2013/34/EU.
1 official sourcessingle_source
Official definitions by source
CSDDD
Directive (EU) 2024/1760 on corporate sustainability due diligence
(i) the ‘net turnover’, as defined in Article 2, point (5), of Directive 2013/34/EU; or (ii) where the company applies international accounting standards adopted on the basis of Regulation (EC) No 1606/2002 of the European Parliament and of the Council (47) or is a company within the meaning of point (a)(ii), the revenue as defined by or within the meaning of the financial reporting framework on the basis of which the financial statements of the company are prepared;
Reference: Article 3, point m
Practical application
This term matters when assessing applicability, group coverage, and timing because CSDDD obligations apply first to companies above specified turnover and employee thresholds.
Minespider commentary
For Minespider, net turnover is a scope-gating metric that links corporate size evidence to due-diligence applicability.
Common confusions
- Assuming the everyday meaning of net turnover is enough without checking the official source definition.
- Using net turnover as a loose generic label rather than the narrower meaning used in the source text.
- Confusing net turnover with a neighboring legal actor or responsibility term without checking how the source allocates obligations.