VS (formerly VSME)
VS (formerly VSME) as a voluntary sustainability report for companies outside the CSRD. Is the standard suitable for your company? Structure and content explained simply.
The VS (Voluntary Standard), formerly the VSME (Voluntary Sustainability Reporting Standard for SMEs), is the EU's voluntary sustainability reporting standard and is aimed at all companies that do not fall under the CSRD and are therefore not required to conduct the Double Materiality Assessment according to the ESRS. The Omnibus Directive has been in force since 18 March 2026: from financial year 2027, only companies with more than 1,000 employees AND more than €450 million net turnover (both criteria cumulative) are subject to CSRD reporting. The VS serves as a foundation for everyone else who wishes to publish a sustainability report voluntarily.
This standard provides a good data point basis to meet the expectations of various stakeholders. In particular, Scope 1-3 emissions are becoming increasingly important. On 3 July 2026 the EU Commission adopted the VSME as the broader VS (Voluntary Standard) via a delegated act; it has been in force as Delegated Regulation (EU) 2026/1560 since 24 September 2026. It is no longer open only to SMEs but to all companies not subject to mandatory CSRD reporting.
Helpful tools for your sustainability report
Practical and interactive workshop for a better understanding and implementation of the VS standard. Physical or digital.
Word template (& PDF) for a sustainability report according to the VS standard.
Practice-oriented 3-hour workshop on conducting Scope 3 calculations according to the GHG Protocol. Physical or digital.
1. What is the VS (formerly VSME)?
The VS (Voluntary Standard) is a voluntary European sustainability reporting standard for companies that are not directly subject to the CSRD reporting obligation. It is based on the VSME (“Voluntary Sustainability Reporting Standard for non-listed SMEs”), which EFRAG published for small and medium-sized enterprises in December 2024. On 3 July 2026 the EU Commission adopted the standard as the VS and opened it up to all companies outside the CSRD scope. The aim is to provide these companies with a practical, uniform framework for ESG reports, but without the complexity of the ESRS and without a Double Materiality Assessment, yet still with clear requirements.
With the EU Omnibus package, the standard becomes even more important. The Omnibus Directive has been in force since 18 March 2026: from financial year 2027, only companies with more than 1,000 employees AND more than €450 million net turnover (both criteria must be met at the same time) are subject to CSRD reporting. Everyone else falls out. The VS is now the central reference point for sustainability inquiries along the value chain (“trickle-down effect”).
The voluntary reporting standard was previously called VSME (EFRAG, December 2024). On 3 July 2026, the EU Commission adopted it via a delegated act as the VS (Voluntary Standard), as part of the Omnibus I package. It has been in force as Delegated Regulation (EU) 2026/1560 since 24 September 2026 and is open to all companies not subject to mandatory CSRD reporting, no longer just SMEs. In terms of content, the VS builds on the VSME with only minor changes: the standard has been simplified further, and the value chain cap is clearly limited to Annex II of the VS. CSRD-obligated companies may therefore not require value-chain partners with up to 1,000 employees to provide information beyond that (from financial year 2027). That's why we use the new name VS on this page. Learn more in our article Final ESRS and VS Standard 2026.
Significance of the VS for companies
- Customers, banks, and business partners are increasingly demanding ESG information.
- Even companies not subject to CSRD are under data and evidence pressure.
- The VS provides an upper limit for requested sustainability information while creating legal certainty.
2. How is the VS structured?
Like the VSME before it, the VS is structured in a modular way and consists of two modules. The figures below refer to EFRAG's VSME version of December 2024, on which the VS is based. Together, both modules comprise around 190 data points.
Basic Module
- comprises 11 disclosures (B1–B11)
- forms the minimum standard
- ideal for micro-enterprises or SMEs with limited resources
Comprehensive Module
- comprises 9 additional disclosures (C1–C9)
- for companies that want to provide more detailed insights
- extends the report with additional environmental, social, and governance aspects
Content Focus Areas
- Environment (e.g., energy, emissions, resources)
- Social (e.g., working conditions, supply chain)
- Corporate governance (governance structures)
Some disclosures are mandatory, others follow the “if applicable” approach. These consequently only need to be reported if they are relevant to the company.
3. How should reporting be done?
The VS provides clear structural guidelines, but no rigid format. What matters is:
Transparency and traceability
A report should disclose:
- Which topics affect the company?
- What data is available and how was it determined?
- What progress or challenges exist?
Systematic data collection
A structured process is recommended:
- Create orientation & clarify responsibilities
- Narrow down relevant topics
- Collect & prepare data
- Structure and write the report
- Communicate results
Optional Double Materiality Assessment
Unlike the CSRD, the Double Materiality Assessment is not required in the VS.
Nevertheless, it can be useful to align reporting strategically. Should it be desired, we are happy to support its implementation.
4. What aids and tools are available?
Companies can benefit from several digital support offerings:
1. New VSME digital tool (BMWE/BMDS)
An officially launched, free tool facilitates:
- Data collection
- Structuring
- Creation of a complete VSME report
2. DNK platform
The German Sustainability Code integrates both VSME modules into its platform, including a completeness check. By the end of 2026, the DNK will switch its VSME module to the VS.
3. Industry guides & VS templates
Some institutions provide practical sample reports and guides. With our VS Word template or the VS data point list, valuable time can be saved.
5. VS report completed: What comes next?
Upon completion of the report, the voluntary standard opens up new opportunities:
Improved data basis for strategic decisions
A structured ESG overview helps identify risks and seize opportunities.
Relief from ESG inquiries
Through the upper limit function, standardized information becomes reusable multiple times. For example, with customers, banks, or partners.
Perspective: Development toward ESRS
The VS can be an entry point. Companies that later need to meet CSRD or ESRS obligations already have a solid foundation.
On 6 May 2026 the EU Commission published a draft of simplified ("revised") ESRS for consultation and adopted the revised ESRS, together with the VS, on 3 July 2026. The key changes: mandatory data points cut by over 60%, total data points by over 70%, and reporting costs per company reduced by around 30%. The materiality assessment is also simplified. The revised ESRS were published in the EU Official Journal on 21 September 2026 as Delegated Regulation (EU) 2026/1563. They apply mandatorily to financial years beginning on or after 1 January 2027. Companies building on the VS now will be well placed if they later become subject to the ESRS. Details: Final ESRS and VS Standard 2026.
Continuous improvement
Sustainability reporting is a process. Regular updates, improvements, and monitoring therefore make sense, and effective measures should be implemented. Improving GHG accounting, especially Scope 3 calculation, can also be strategically very valuable.
Further reading and links
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6. Frequently Asked Questions (FAQ)
Is the VS mandatory?
No. The standard is voluntary, but may become de facto relevant through customer or supply chain expectations. Moreover, on 3 July 2026 the EU Commission officially adopted it via a delegated act as the voluntary standard for sustainability reporting; it has been in force as Delegated Regulation (EU) 2026/1560 since 24 September 2026.
What is the difference between the VSME and the VS (Voluntary Standard)?
The VSME (Voluntary Sustainability Reporting Standard for non-listed SMEs, published by EFRAG in December 2024) was originally designed for SMEs outside the CSRD scope. On 3 July 2026 the EU Commission adopted it via a delegated act as the VS (Voluntary Standard), as part of the Omnibus I package. The VS has been in force as Delegated Regulation (EU) 2026/1560 since 24 September 2026. It is no longer open only to SMEs but to all companies not subject to mandatory CSRD reporting. In terms of content, it builds on the VSME with only minor changes: further simplifications and a value chain cap clearly limited to Annex II of the VS. Existing VSME reports remain valid.
For whom is the VS worthwhile?
Especially for:
- SMEs and other companies without CSRD obligation
- Suppliers to large companies
- Businesses with ESG inquiries from banks/customers
Do I need a Double Materiality Assessment?
No. However, it can improve the quality and impact of the report. In addition, the DMA offers strategic value, including for identifying opportunities and risks for the company.
How many data points does the VS comprise in total?
The VSME version of December 2024, on which the VS is based, comprises a total of around 190 data points in two modules. You can find details in our VS data point list.
Can I create the report digitally?
Yes, there is an official digital tool that greatly simplifies creation.
Is CO2 accounting according to the GHG Protocol mandatory?
Disclosures on Scope 1 and Scope 2 emissions are required. Scope 3 can be reported optionally. Depending on the level of ambition, it therefore makes sense to integrate a valid calculation of the footprint.
How can CSR-Tools support me?
We are happy to support you with your VS report through, for example, a VS workshop, a template for your report, or on the topic of GHG accounting. Please contact us for individual inquiries or visit our services page.