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 new voluntary standard is therefore called VS (Voluntary Standard), as it no longer targets SMEs alone, but all companies that are not covered by CSRD.
VS is thus the common European standard for voluntary sustainability reporting and is the natural starting point for companies that:
The new VS is based on the existing VSME standard and has only limited amendments.
The VSME Voluntary Standard, aimed at unlisted SMEs, has now become VS (Voluntary Standard) and covers all companies outside the scope of the CSRD. The standard is based on the former VSME with limited amendments.
This means that companies that are no longer covered by CSRD after Omnibus now have one 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 VS – 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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