Is compliance with the VS Standard a regulatory requirement for ESG reporting?

No – the VS is not legally mandatory for most SMEs. It is designed as a voluntary standard. In practice, however, growing indirect pressure is emerging: banks, large corporate clients subject to CSRD, and public sector clients are increasingly requesting a VS-compliant report as evidence – effectively making this ESG reporting standard indispensable.

Legal Status: VS is Voluntary

The VS (Voluntary Standard) is a voluntary framework. The European Commission adopted it with Delegated Regulation (EU) 2026/1560 (published on 21 September 2026), but this does not create a reporting obligation: the regulation sets out a uniform framework under which companies can provide sustainability information voluntarily. This means there are no legal penalties if an SME chooses not to publish a VS report. Furthermore, the EU Omnibus Package 2026 has further eased direct corporate sustainability reporting requirements for SMEs.

Why is VS Factually Essential Regardless?

Three market drivers make VS the de facto standard in business practice:

  • Supply Chain Pressure: Large enterprises subject to CSRD must disclose their Scope 3 emissions and are actively requesting this sustainability data directly from their SME suppliers.
  • Bank Financing: Under the MaRisk 2023 framework, financial institutions assess ESG risks during credit risk appraisals – SMEs lacking ESG data face less favourable financing terms.
  • Procurement and Tenders: Public authorities and industrial buyers increasingly demand ESG disclosure and sustainability reporting as a mandatory condition for contract awards.

Conclusion

Legally voluntary, practically essential. SMEs that proactively draft a VS ESG report secure a distinct competitive advantage and remain fully prepared for stakeholder inquiries. With ESG Lift, this process takes just 1–3 hours, starting from €890/year.

Is the VS-Standard mandatory for SMEs? The 2026 legal landscape explained simply – and why it remains practically indispensable for ESG reporting.