How to prepare your business for CSRD
In spring 2026, the European Commission adopted a simplified version of the European Sustainability Reporting Standards (ESRS), which significantly reduces the reporting burden.
In future, the general rule will be that companies must have more than 1,000 employees and a net turnover of over EUR 450 million to be directly subject to the reporting requirements. Many companies that previously expected to be covered will therefore fall outside the scope of the directive.
The aim is to make reporting more focused and materiality-based, so that companies can concentrate on the most relevant sustainability issues.
In future, companies may base their reporting on reasonable and substantiated information available at the time of reporting, without having to obtain information that can only be procured at disproportionate cost.
Existing analyses can be updated on an ongoing basis, which significantly reduces the administrative burden.
Although fewer companies will be directly covered by the CSRD, ESG data will remain crucial. Banks, investors, major clients and public sector contracting authorities continue to demand documented sustainability information.
Consequently, many companies are continuing to adopt a structured approach to ESG – even if they are no longer legally subject to the CSRD.
The voluntary standard for sustainability reporting has hitherto been known as VSME (Voluntary Sustainability Reporting Standard for non-listed Micro, Small and Medium-sized Enterprises) and was developed specifically for unlisted SMEs.
With the Omnibus reform, the EU has chosen to significantly expand the target group. The forthcoming voluntary standard will therefore be adopted as the VS (Voluntary Standard), as it no longer targets SMEs alone, but all companies not covered by the CSRD.
The VS will thus become the common European standard for voluntary sustainability reporting and is expected to become the natural starting point for companies that:
The forthcoming VS is based on the existing VSME standard and is expected to undergo only minor adjustments, meaning that companies can already begin working in accordance with VSME, with a high probability that this work can be reused when VS comes into force.
The VSME Voluntary Standard, aimed at unlisted SMEs, is now being renamed VS (Voluntary Standard) and now covers all companies outside the scope of the CSRD, based on the VSME with limited amendments.
This means that companies no longer covered by the CSRD following the Omnibus Directive will have a single common European standard for voluntary sustainability reporting.
At Grant Thornton, we help you build a clear structure for your ESG reporting – whether you are complying with the requirements of the CSRD or the VSME – and turn compliance into a natural part of your business development.
We assist with:
Contact us today for a non-binding discussion about how we can tailor our advisory to match your company’s specific needs.
Contact us today for a no-obligation conversation about how we can help your company navigate the CSRD requirements and strengthen your ESG and sustainability initiatives.
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