Revised ESRSs and EU Voluntary Sustainability Reporting Standard published in Official Journal
Revised ESRSs and EU Voluntary Sustainability Reporting Standard published in Official Journal
The European Commission’s delegated acts establishing the revised European Sustainability Reporting Standards (ESRS) and the new Voluntary Sustainability Reporting Standard (VS) have been published in the Official Journal of the European Union on 21 September 2026.
The VS, based on EFRAG’s former VSME Recommendation, provides a voluntary reporting framework for undertakings with fewer than 1,000 employees, helping them respond to sustainability information requests from investors, lenders and larger companies. The VS introduces a ‘value chain cap’ limiting the sustainability information that may be required from entities in the value chains of entities in scope of the Corporate Sustainability Reporting Directive (CSRD). According to the ‘value chain cap’, entities with an average of 1,000 employees or fewer during the preceding financial year cannot be required to provide information beyond the datapoints specified in the VS.
The VS regulation enters into force three days after publication in the Official Journal, with the ‘value chain cap’ applying to financial years beginning on or after 1 January 2027.
The revised ESRS regulation enters into force on 10 November 2026 and applies to financial years beginning on or after 1 January 2027.
Both regulations are binding in its entirety and directly applicable in all Member States.
EFRAG has updated and published the non-mandatory guidance supporting the VS on its ESRS Knowledge Hub.
More information is available in the press release.
The VS, based on EFRAG’s former VSME Recommendation, provides a voluntary reporting framework for undertakings with fewer than 1,000 employees, helping them respond to sustainability information requests from investors, lenders and larger companies. The VS introduces a ‘value chain cap’ limiting the sustainability information that may be required from entities in the value chains of entities in scope of the Corporate Sustainability Reporting Directive (CSRD). According to the ‘value chain cap’, entities with an average of 1,000 employees or fewer during the preceding financial year cannot be required to provide information beyond the datapoints specified in the VS.
The VS regulation enters into force three days after publication in the Official Journal, with the ‘value chain cap’ applying to financial years beginning on or after 1 January 2027.
The revised ESRS regulation enters into force on 10 November 2026 and applies to financial years beginning on or after 1 January 2027.
Both regulations are binding in its entirety and directly applicable in all Member States.
EFRAG has updated and published the non-mandatory guidance supporting the VS on its ESRS Knowledge Hub.
More information is available in the press release.