VOLUNTARY STANDARD (VS)
The European standard for voluntary 
sustainability reporting

WHAT IS THE VOLUNTARY STANDARD?

The Voluntary Standard (VS) is the European standard for voluntary sustainability reporting, adopted by the European Commission through Commission Delegated Regulation (EU) 2026/1560 of 3 July 2026 and published in the Official Journal of the European Union on 21 September 2026.

Based on the technical work developed by EFRAG through the VSME (Voluntary Sustainability Reporting Standard for SMEs), it provides companies with a proportionate framework for collecting and communicating their environmental, social and governance (ESG) information.

Unlike the ESRS, which are intended for companies subject to the reporting obligations established by the Corporate Sustainability Reporting Directive (CSRD), the Voluntary Standard is designed for SMEs and, more broadly, for companies reporting on a voluntary basis because they are not subject to mandatory reporting requirements.

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HOW IS THE VOLUNTARY STANDARD STRUCTURED?

The Voluntary Standard consists of two modules: the Basic Module and the Comprehensive Module. The former covers essential information about a company's sustainability, while the latter adds further disclosures to address more detailed information needs.

Companies can choose between two options:
•    Option A: apply the Basic Module only.
•    Option B: apply both the Basic Module and the Comprehensive Module.

The Comprehensive Module cannot be applied on its own: it always requires the Basic Module. Each module must be applied in its entirety, reporting the relevant information according to the applicability conditions set out in the standard.

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Basic Module: essential information

The Basic Module comprises 11 disclosures, identified by codes B1–B11, covering general information about the company and the main environmental, social and business conduct aspects.

General information

• B1 – Basis for preparatio

• B2 – Practices, policies and future initiatives for transitioning towards a more sustainable economy

Environmental information

• B3 – Energy and greenhouse gas emissions

• B4 – Pollution of air, water and soil

• B5 – Biodiversity

• B6 – Water

• B7 – Resource use, circular economy and waste management

Social information

• B8 – Workforce: general characteristics

• B9 – Workforce: health and safety

• B10 – Workforce: remuneration, collective bargaining and training

Governance information

• B11 – Convictions and fines for active and passive corruption

Not all data must be reported by every company in the same way. The Voluntary Standard distinguishes between essential data points, information to be provided only under certain circumstances and optional data points. 

 

Comprehensive Module: additional information

The Comprehensive Module comprises 9 additional disclosures, identified by codes C1–C9. It allows companies to expand their reports with information that may be useful in addressing more detailed information needs.

Sustainability strategy and management

• C1 – Strategy, business model and sustainability-related initiatives

• C2 – Description of practices, policies and future initiatives for transitioning towards a more sustainable economy

Environmental information

• C3 – Greenhouse gas emission reduction targets and climate transition

• C4 – Climate risks

Social information

• C5 – Additional workforce characteristics

• C6 – Human rights policies and procedures

• C7 – Human rights incidents

Economic and governance information

• C8 – Revenue from certain activities

• C9 – Gender diversity in the governance body

The Comprehensive Module therefore allows companies to provide a more detailed picture of their sustainability while maintaining a voluntary and proportionate approach.

 

HOW THE VS CAN BE APPLIED?

For a company looking to start reporting leveraging this standard, the process can be organised into the following steps:

1. Define the reporting boundary: identify the company or group of companies covered by the information and the reporting period;

2. Choose the module: decide whether to apply the Basic Module only or both modules, depending on information needs;

3. Check the applicability of disclosures: distinguish between essential data points, those required only under certain circumstances and optional data points;

4. Collect the data: identify the required information, internal sources and people responsible for data collection;

5. Prepare the report: organise the information clearly, consistently and traceably, explicitly stating which option has been adopted.

The Voluntary Standard does not require a double materiality assessment in the same way as the ESRS and does not introduce a mandatory assurance requirement for the report. However, companies may choose to have the information independently verified on a voluntary basis.

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WHAT IS THE RELATIONSHIP BETWEEN VS AND VSME?

The Voluntary Standard (VS) is based on the technical work developed by EFRAG through the VSME (Voluntary Sustainability Reporting Standard for SMEs). The European Commission subsequently adopted the Voluntary Standard through Delegated Regulation (EU) 2026/1560, establishing it as the European regulatory reference for voluntary sustainability reporting governed by the regulation.
The VSME therefore provides the technical basis from which the Voluntary Standard was developed. To prepare a report under the currently adopted European framework, the reference is the Voluntary Standard and its associated regulation.

 

WHAT IS THE VALUE CHAIN CAP?

The Value Chain Cap limits the sustainability information that companies subject to the CSRD can request from smaller companies in their value chain. It aims to ensure that these companies are not required to provide additional ESG information beyond what is set out in the Voluntary Standard (VS), within the limits and under the conditions established by the legislation. The cap applies to a selection of data points specified in the Voluntary Standard and listed in Annex II to Delegated Regulation (EU) 2026/1560.

The Value Chain Cap provisions apply to financial years beginning on or after 1 January 2027.

 

WHERE CAN THE OFFICIAL TEXT BE FOUND?

The regulatory reference is Delegated Regulation (EU) 2026/1560, published in the Official Journal of the European Union on 21 September 2026.​

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