#Knowledge
Sustainability reporting
The New VS Standard
Voluntary reporting is becoming easier
Voluntary reporting is becoming easier
The new standard was prompted by the realignment of European sustainability regulations as part of the Omnibus Package, which formally took effect in March 2026. The scope of the CSRD has been significantly narrowed. As a result, many companies that had already been considering a potential reporting obligation are now formally outside the direct scope of application.
But that doesn’t settle the matter. Large companies that remain subject to reporting requirements will still need to take information along their value chain into account in the future. As a result, suppliers, service providers, and business partners are often asked to provide sustainability data, even though they themselves are not subject to CSRD requirements. The VS Standard closes precisely this gap. It establishes a common framework for what and how much sustainability information companies should provide outside the scope of the CSRD.
The VS Standard is a voluntary reporting standard for companies not covered by the CSRD. It is particularly relevant for companies with up to 1,000 employees that are required to regularly provide sustainability information to stakeholders.
The goal is clear: Companies should be able to report transparently without being overwhelmed by disproportionate requirements.
The VSME hasn’t suddenly become worthless. Rather, it forms the foundation upon which the new VS standard is built.
The basic structure also remains familiar. It continues to include a base module with basic sustainability information and an optional expansion module for more in-depth information.
However, once the final VS standard is adopted, companies should review what adjustments are necessary compared to the previous VSME.
What has changed compared to the VSME:
There have also been changes to the content. These include, among other things:
These changes clearly show that the new standard is intended to be more practical. The goal is to establish a realistic foundation for reliable sustainability information.
The most significant change is the integration of the VS standard with the so-called “Value Chain Cap.” Going forward, this mechanism will limit the sustainability information that large companies subject to the CSRD may request from smaller companies in their value chain. The scope of the voluntary standard serves as the limit. This creates, for the first time, a clearly defined framework for data requests within the supply chain.
For small and medium-sized enterprises, this means, above all:
At the same time, this effectively makes the VS standard the de facto minimum standard for much sustainability information. While it remains voluntary, it will become relevant for many companies in practice because customers, banks, and business partners will use it as a guide.
As helpful as the VS standard is, it has clear limitations.
It is, above all, a simplified reporting framework. Its focus is on providing basic sustainability information in a structured manner. However, it does not replace a comprehensive sustainability strategy. For many companies, the VS standard is sufficient to better respond to customer inquiries and to develop a pragmatic voluntary report.
However, anyone who wants to actively use sustainability for positioning, risk management, transformation, or financing should think beyond the VS Standard. In that case, we recommend aligning more closely with the ESRS and voluntarily adopting selected ESRS elements, such as:
Even though the VS standard remains voluntary, it is significantly changing the reality of sustainability reporting. Many SMEs are already finding that, although they are not directly required to report, they still have to provide sustainability information—for example, because a major customer requests ESG data.
The VS standard can serve as a central reference here:
The VS Standard offers a practical starting point, especially for companies that have been unsure about how to report on sustainability in a pragmatic way.
Now is a good time for companies to prepare. The following steps are particularly helpful:
Current status: The draft VS standard was published on May 6, 2026, and is open for public comment through June 3, 2026.
The European Commission will then adopt the final delegated act. It is currently expected to do so sometime in 2026. Following a review period by the Parliament and the Council, the standard can then formally enter into force.
The new VS standard exemplifies the new approach to sustainability regulation in Europe. Fewer companies are directly subject to these requirements. At the same time, more companies are indirectly affected because sustainability information continues to be required throughout supply chains, financing arrangements, and business relationships.
Voluntariness, therefore, does not mean arbitrariness.
The VS Standard is expected to become the central framework for sustainability information outside the CSRD. For many companies, it offers a pragmatic starting point for better managing requirements, reducing data requests, and fostering transparency.
Those who wish to leverage sustainability strategically beyond this point should view the VS Standard not as an endpoint, but as a foundation. When supplemented with selected ESRS elements, it can become an effective management tool—for better decisions, stronger positioning, and greater future viability.
