Omnibus: What do the EU's new rules mean for small and medium-sized businesses?

It aims to simplify sustainability reporting and reduce the administrative burden, especially for small and medium-sized enterprises (SMEs).

The name says a lot. Omnibus is Latin and roughly means "for all".[8] In other words, it's a legislative package that amends several sets of rules at once. Here, it's mainly about CSRD (Corporate Sustainability Reporting Directive) and CSDDD, the Corporate Sustainability Due Diligence Directive.

Not everyone is happy, though. Critics argue that fewer reporting requirements risk lowering companies' sustainability ambitions. Supporters see a chance to put the energy into actual transition work rather than filling in spreadsheets.

What has changed in CSRD?

The biggest news is that CSRD now only applies to the very largest companies: those with more than 1,000 employees and a net turnover above €450 million.[1][2] Both conditions must be met. The Commission's original proposal set the bar at 1,000 employees and a turnover above €50 million (or a balance sheet total above €25 million), but the turnover threshold was raised significantly during negotiations.[3]

The result? Around 90 percent fewer companies are in scope compared to the original CSRD.[4] For most SMEs, the legal requirement to report under CSRD disappears entirely.

A few more changes worth knowing about:

• Listed SMEs are removed from CSRD entirely. Instead, they can choose to report voluntarily using the recommended EU standard VS (formerly VSME).[2][5]
• No mandatory sector standards. The Commission's mandate to develop sector-specific standards has been removed.[3][4]
• Exemptions for some early reporters. Companies that started reporting in 2024 but now fall below the new thresholds are exempt for the 2025 and 2026 financial years.[5]

When do wave 2 companies have to report?

Back in April 2025, a so-called "stop the clock" directive postponed the requirements by two years.[4] Large wave 2 companies that are still in scope will now report for the first time for the 2027 financial year, with reports published in 2028.[4]

The standards themselves have also been slimmed down. EFRAG developed a simplified version of the ESRS with just over 60 percent fewer mandatory data points.[5] The Commission has now adopted the revised standards, which apply from the 2027 financial year.[7]

VS: the voluntary standard for companies with fewer than 1,000 employees

If you run a smaller business, this is the most important part. The EU has developed a voluntary reporting standard, VS (Voluntary Standard, formerly called VSME), for companies with up to 1,000 employees.[6] It builds on EFRAG's earlier voluntary standard for SMEs and has been aligned with the revised ESRS.[6] The Commission adopted VS as a delegated act in July 2026, and the name changed from VSME to VS in September 2026.[6]

VS gives you a structured way to report climate data, energy use, working conditions and governance. You can show customers, banks and investors that you're on top of things, without going the full CSRD route.

The value chain cap protects smaller suppliers

VS also works as a ceiling, known as the value chain cap. Large CSRD companies may not demand more sustainability information from suppliers with fewer than 1,000 employees than what's included in VS.[1][6] Contract terms that try to get around the cap are not binding.[5]

The cap applies to financial years starting on or after 1 January 2027.[6] But the protection doesn't mean the questions will stop. Your largest customers still have to report on impacts across their entire value chain, so the questions will land on your desk too.

Need to produce a VS report? See how GoClimate can help.

Five things you can do right now

Even though the legal requirement has gone away for most SMEs, it pays to be prepared. Here's how to get started:

1. Learn what VS covers. The standard sets the limit for what customers can ask for, so it's good to know when the questionnaires start arriving.
2. Map your data. Emissions, energy, resource use, working conditions and gender equality. Much of it is already in your invoices and receipts.
3. Set up simple routines. Decide who collects what, and how often. That way you won't have to scramble when a customer gets in touch.
4. Talk to your largest customers. Ask what information they need. And make it easy on yourself: prepare your figures according to VS and you'll have everything they're entitled to ask for.
5. Give your team the basics. It goes a long way if a few people understand what sustainability reporting is about.

Keep an eye on what happens next, too. Omnibus includes a review clause, so the Commission will evaluate the thresholds and other aspects going forward.[1] Starting to work in a structured way now reduces the risk of rushed and costly adjustments later.

Summary: fewer requirements, but the questions remain

Omnibus makes sustainability reporting more proportionate. CSRD only applies to the largest companies, listed SMEs are out, the standards have been slimmed down, and smaller suppliers get protection in the value chain.

There's every indication that VS will become the standard most small and medium-sized businesses use when customers, banks and investors ask for sustainability data. If your data is in order, you're ahead.

And hopefully companies can now put more effort into actually cutting their emissions, not just reporting them, and make a real difference.

Get started with your sustainability report: book a demo of GoClimate's VS tool