The VSME Just Got a Bigger Reach
The EU's voluntary reporting framework is expanding to companies with up to 1,000 employees. Here's what that means.
Many companies with up to 1,000 employees have been watching the CSRD and Omnibus debate from the sidelines, relieved not to be in scope, but uncertain about what sustainability reporting means for them. That picture is becoming clearer.
On the 20th of May 2026, EFRAG held an informative session with a representative of the European Commission on the upcoming Voluntary Standard (VS). The main takeaway: a new EU standard is on its way that will formally extend the VSME ecosystem to include companies with up to 1,000 employees.
What is the Voluntary Standard?
The VS will be adopted by the EU Commission as a delegated act, expected at the end of June or early July 2026, with entry into force in Q4. It is built directly on the existing VSME Standard developed by EFRAG, and is designed to be conceptually coherent with the ESRS used by large companies, but proportional in scope and written in accessible language.
Crucially, it is fully voluntary. No audits, no mandatory opt-in. You can use it, or not.
Why it matters even if you choose not to use it
If your company is in the supply chain of a large business subject to the CSRD, you have likely already received requests for sustainability information. The VS introduces a value chain cap that protects you: large companies subject to CSRD can ask for sustainability data from their SME suppliers, but they cannot require more than what the VS marks as "necessary". The distinction between asking and requiring matters.
For micro companies with 10 employees or fewer, that cap is set even lower.
What changes compared to the existing VSME?
Stability was a clear priority in the session. The Commission was explicit that it is not in anyone's interest to deviate unnecessarily from the existing VSME structure, particularly given that many companies and software providers have already built processes around it. The VS stays close to what you may already know, with targeted adjustments, including the removal of a handful of data points, such as GHG intensity and land-use metrics, from the basic module.
One practical change: guidance will no longer be bundled with the standard. EFRAG will publish and update it separately, keeping it current as the regulatory landscape continues to evolve.
What this means for you
If you are already working with the VSME Standard, the transition should be smooth. If you have not started yet, the VS gives you a credible, structured framework to do so.
The companies that will stand out are not the ones that report because they have to. They are the ones who built the habit early, have the data ready, and can answer their clients' questions with confidence. The framework is there. The question is whether you want to be ahead of it, or catching up to it.
Sources: EFRAG, Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME). // EFRAG SME Forum, Informative session with the European Commission, 20 May 2026. // European Commission, Omnibus proposal COM(2025) 81, 26 February 2025.
