Commission endorses VSME voluntary sustainability reporting standard

The European Commission has endorsed the VSME voluntary sustainability reporting standard and published a Questions & Answers document recommending it as the basis for a future voluntary reporting standard under the Omnibus I simplification package.

• Main action: The Commission endorsed EFRAG’s VSME standard (delivered to the Commission in December 2024) in a Q&A published 30 July 2025, and stated the VSME Recommendation will be used as the basis for a future voluntary standard to be adopted by delegated act if the Omnibus I negotiations conclude as proposed; the Omnibus I proposal (adopted 26 February 2025) would limit mandatory CSRD scope to companies with more than 1000 employees and make the VSME-based voluntary standard applicable to companies with up to 1000 employees.
• Background & process details: The Omnibus I proposal also extends the value‑chain cap, with limits to be defined by the voluntary standard; the delegated-act adoption process will follow the Accounting Directive consultation requirements (consulting MSEGSF, ARC, European Supervisory Authorities) and a “Have Your Say” public feedback period; EFRAG ran public consultation and field-testing with SMEs and provides support materials (VSME Ecosystem, multilingual educational videos, an XBRL template and external guidance links).