VSME vs VS: What Changed, and What It Means for Your Reporting

VSME and VS are the same standard under two names. The European Commission adopted it as the Voluntary Standard (VS) on 3 July 2026, building on EFRAG's VSME work. The content and two-module structure are largely unchanged. What changed is the name and the scope.

Is VS the same as VSME?

Yes, in substance. VS is the adopted version of the standard EFRAG developed under the working name VSME. The disclosures, the two-module structure and the underlying methodology carried over. The European Commission adopted it as the "Voluntary Standard" on 3 July 2026.

If you built your reporting plan around VSME, that work holds. You are not looking at a new standard, you are looking at the same standard with its final name. Most practitioners, and most search results, still say VSME. Expect both terms to circulate for at least the next year.

Why was VSME renamed to VS?

The name changed because the scope changed. VSME was written for non-listed small and medium enterprises. After the Omnibus narrowed mandatory CSRD reporting, the standard was recast to serve all non-listed companies up to 1,000 employees, which is a much broader group than "SME" describes.

Dropping "SME" from the name is the honest move. A 900-person manufacturer with €300 million in turnover is not an SME in any ordinary sense, but it is now squarely in the group this standard is designed for. The Omnibus pushed those companies out of mandatory CSRD scope, and VS is what the EU offers them instead.

What is the difference between VSME and VS in practice?

The practical differences are scope and status, not content. VS covers non-listed companies up to 1,000 employees and €450 million turnover. It has legal standing as an adopted delegated act, where VSME was a recommendation. The disclosures themselves are essentially the same.

Is the Voluntary Standard mandatory?

No. VS is voluntary by design. No company is legally required to report against it. In practice, though, customers, banks and investors ask for the data, and VS is the format they have agreed to accept.

This is the part that trips people up. "Voluntary" describes your legal obligation, not your commercial reality. If a large CSRD-reporting customer needs value-chain data from you, they will ask. VS gives you a standard answer instead of a custom questionnaire every time. See what the Omnibus changed for CSRD for why that demand persists even after the mandate disappeared.

What is the value chain cap, and how does VS relate to it?

The value chain cap limits how much sustainability data a large CSRD-reporting company can demand from smaller partners. Companies with 1,000 or fewer employees can decline requests that go beyond what the Voluntary Standard covers. VS defines that ceiling.

For a supplier, this is the most useful thing in the whole package. Instead of answering five different customer questionnaires with five different formats, you produce one VS report and point everyone to it. The cap gives you a defensible basis for saying no to anything beyond it.

Should I still say "VSME" or start saying "VS"?

Use "the Voluntary Standard (VS)" in formal documents and reports, since that is the adopted name. Keep saying VSME in conversation where your audience knows that term. Both refer to the same standard, and both will be understood throughout the transition.

We do the same thing on this site. The official name is VS, but most people searching for guidance still type VSME, so you will see both. There is no risk of confusion as long as you are clear once that they are the same standard.

What should I do now?

If you already started VSME preparation, continue. The standard did not change underneath you. If you have not started, begin with the Basic Module, which covers energy, Scope 1 and 2 emissions, workforce data and governance basics.

The practical sequence has not changed: get your Basic Module data in order first, then decide whether stakeholder demands justify the Comprehensive Module. See whether the Voluntary Standard is the right move for your company.

Check your readiness free →

Frequently asked questions

Is VS the same standard as VSME?
Yes. VS is the adopted name for the standard EFRAG developed as VSME. The European Commission adopted it on 3 July 2026 with the content and two-module structure largely unchanged.

When does the Voluntary Standard apply?
It applies to financial years beginning on or after 1 January 2027, with voluntary early adoption for financial year 2026 once the delegated act enters into force.

Does VS require a double materiality assessment?
No. Unlike the ESRS, the Voluntary Standard does not require a double materiality assessment.

Who is the Voluntary Standard for?
Non-listed companies that are not subject to mandatory CSRD reporting, up to 1,000 employees and €450 million net turnover.