What is the difference between VS and CSRD in terms of ESG reporting?

CSRD: The Mandate for Large Enterprises

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that mandates sustainability reporting for large companies – since the EU Omnibus Package 2026 only for companies with more than 1,000 employees and more than €450 million in net turnover. These organisations are required to report in accordance with the ESRS standards – encompassing over 1,100 data points and subject to mandatory third-party assurance by auditors.

VS: The Voluntary Standard for SMEs

The VS is a voluntary standard: the European Commission adopted it with Delegated Regulation (EU) 2026/1560, but it does not create a reporting obligation. It is aimed at companies with up to 1,000 employees that are not subject to mandatory reporting. Featuring 147 data points, it is significantly more streamlined than the ESRS while still covering all key ESG criteria. It is fully compatible with the supply chain data requirements of companies subject to CSRD compliance.

The Core Connection: How CSRD Drives Supply Chain ESG Pressure on SMEs

CSRD-compliant corporations must report on Scope 3 emissions – covering greenhouse gas emissions across their entire value chain. Consequently, they demand robust ESG data from their SME suppliers. The VS is the standard adopted by the European Commission to address these supply chain ESG requests.