VS 2026 is here: what the new sustainability standard means for SMEs

On July 3, 2026, the EU Commission adopted the VS 2026 – the official successor to the previous VSME standard. For everyone who has already worked with VSME or is just looking to get started, this article explains what specifically is changing and what remains the same.

The path to the VS 2026: how it came about

The VSME standard was originally developed by EFRAG and declared the official EU standard in July 2025 – initially as a voluntary recommendation without binding legal status. With the Omnibus I package, which came into force in March 2026, the starting situation changed fundamentally: the CSRD thresholds were significantly raised (to over 1,000 employees and over €450 million in turnover), which meant that many companies previously subject to reporting obligations fell out of the CSRD scope. For these companies, a viable voluntary framework was needed – the EU Commission subsequently launched a public consultation on a revised standard, which ran until June 3, 2026. On May 6, 2026, the first draft of the VS 2026 followed, and on July 3, 2026, its formal adoption as a delegated act.

Why the EU changed the name from VSME to VS

The name change is more than cosmetic: "VSME" was strongly linked to the original EFRAG recommendation, which was expressly intended as a non-binding guideline. With its transition into a delegated act, the Commission wanted a name that reflects the new, more binding status – "VS" (Sustainability Reporting Standard for Voluntary Use) signals that it is an officially recognized standard, even if its application remains voluntary.

What's next

Following adoption by the Commission, the act goes through the regular scrutiny process of the Parliament and Council before being formally published. In practice, this means: the substantive framework is already set, but minor adjustments in details cannot be ruled out until the final publication in the Official Journal of the EU. Anyone starting implementation now should keep an eye on this process, but should not wait for the final formal confirmation.

The most important facts at a glance

• Legal status: The VS 2026 was adopted as a delegated EU act – a significantly more binding status than the previous voluntary EFRAG recommendation.

• Scope of application: Still voluntary for all companies that are not directly subject to CSRD reporting obligations – now uniformly up to 1,000 employees.

• Continuity: Around 180 out of 200 data points from the previous VSME remain unchanged. Anyone who has already worked according to VSME does not have to start from scratch.

• New: A separate, leaner regulation for micro-enterprises with fewer than 10 employees.

• Value Chain Cap: With the adoption of the VS 2026, the Value Chain Cap is also legally anchored – large customers may not demand more data from you as a supplier with up to 1,000 employees for their own CSRD reporting than is contained in the VS 2026. (What this means in practice – and where it does not apply: Value Chain Cap – what it protects and what it doesn't.)

What this means for you in practice

If you are already reporting according to VSME: Your previous work remains largely valid. The adjustments are manageable – a comparison of the new module structure with your existing report is usually sufficient, instead of starting from scratch.

If you do not have a report yet: The VS 2026 is now the official, legally anchored framework you can orient yourself by – with the additional advantage that it has now become an integral part of the Value Chain Cap. Anyone starting now starts directly with the current version, without any conversion effort later.

If you have fewer than 10 employees: A separate, even further reduced regulation within the VS 2026 now applies to you – making entry even easier than for larger medium-sized companies.

Why the binding nature of the act is more important than it sounds

The difference between a "voluntary recommendation" and a "delegated act" is more than a legal subtlety: with the act, the Value Chain Cap is no longer just a political declaration of intent, but a rule that suppliers can concretely rely on when dealing with their large customers. For assessments by banks, buyers, and auditors, this noticeably increases the credibility of a VS 2026-compliant report compared to a freely drafted report.

How strait handles the transition

Since strait continuously records energy and operational data via IoT sensors and does not tie it to a fixed report template, the underlying database can be used independently of the specific standard version – whether VSME, VS 2026, or a future development. The structure of the report adapts, the raw data remains.

First steps to a VS 2026 report? The step-by-step guide shows you the practical way – including a free template.

Ready for your VS 2026 report?

Download the free VS / VSME report template – or book a demo.

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