One common, light template
Before VSME and the VS, smaller companies received sustainability questionnaires from customers, banks and investors, each in its own format. The VS replaces this with one structure that every company can use. One report can answer many requests, and readers can compare companies with each other.
The standard has two modules:
- Basic Module (B1–B11): the target approach for micro companies and the minimum for all others.
- Comprehensive Module (C1–C9): additional datapoints that banks, investors and corporate customers are likely to ask for.
A company chooses Option A (Basic Module only) or Option B (Basic and Comprehensive Module) and states in its report that it complies with the VS under that option. The VS does not require a double materiality assessment, and companies using it are not obliged to have the report assured.
From VSME to an EU regulation
The VS is the third step of the same work. EFRAG published VSME in December 2024, the Commission recommended it in 2025, and the EU then turned it into a delegated regulation with small changes.
| Date | What happened |
|---|---|
| December 2024 | EFRAG publishes the VSME standard for non-listed SMEs. |
| 30 July 2025 | Commission Recommendation (EU) 2025/1710 recommends VSME. |
| 24 February 2026 | The Omnibus I Directive (EU) 2026/470 narrows the CSRD and requires a standard for voluntary use. |
| 3 July 2026 | The Commission adopts the Voluntary Standard. |
| 21 September 2026 | The VS is published in the Official Journal as Delegated Regulation (EU) 2026/1560. |
| 24 September 2026 | The regulation enters into force. Companies can report under the VS, and the VSME Recommendation no longer has legal effect. |
| Q4 2026 | EFRAG's digital template and XBRL taxonomy for the VS are expected. |
| Financial years from 1 January 2027 | The value chain cap applies. |
The value chain cap
The VS also works as a value chain cap. Large companies that report under the CSRD may not require value chain companies with up to 1,000 employees to provide more than the datapoints listed in Annex II of the regulation, a subset of the VS's essential datapoints. The cap applies to financial years starting on or after 1 January 2027, and only to information requested for CSRD reporting. Read more on the page Who is the VS for?
What the VS expects from a report
- The information is relevant, faithful, comparable, understandable and verifiable.
- The report covers the same period as the financial statements and is updated annually when customers or banks need annual data.
- From the second year, each metric is shown with the previous year's figure, except metrics reported for the first time.
- A parent company is recommended to report on a consolidated basis. Its subsidiaries are then exempt from reporting.
- The report can be a separate document or a separate section of the management report. It can refer to information published in other documents, and it can be combined with an EMAS environmental statement.
More than compliance
The main purpose of the report is to inform current and potential business partners. Many companies also find that collecting the data shows where they can save energy, reduce costs and lower risks. A report done once a year becomes a simple management tool.