Omnibus I clarifies the sustainability reporting landscape

The EU’s Omnibus I package has significantly reshaped the sustainability reporting landscape. Reporting obligations for large companies have been narrowed, value chain requirements eased, and at the same time VSME has been strengthened as a practical and sufficient reporting framework specifically for SMEs.

For many SMEs, the key question now is: Is this information sufficient for large customers and other stakeholders? The answer is yes.

A clear limit on value chain requirements

Omnibus I introduces a so-called value chain cap: as a rule, large companies cannot require companies with fewer than 1,000 employees to provide CSRD-level disclosures beyond what is covered by VSME. This is a significant relief for SMEs.

In practice, this means that:

• SMEs no longer need to produce heavy, tailor-made questionnaires for each customer
• a single, VSME-based report is sufficient to meet large companies’ information needs
• sustainability data collection becomes more predictable and manageable

Information requests from large companies now focus on environmental and social impacts, key policies and practices, baseline emissions data, and the governance of sustainability. When these elements are described clearly and consistently in line with VSME, an SME can meet the expectations of large companies, financiers, and other partners without CSRD-level reporting.

SMEs should start VSME reporting now

SMEs benefit most by starting sustainability reporting based on the VSME framework today.

A good starting point includes:

• creating a VSME-framework aligned sustainability report
• focusing on what is material and reporting transparently
• using the same data to respond to multiple stakeholder requests

How Aila can help

At Aila, we see VSME as a tool designed specifically for SMEs: it provides a sufficient, comparable, and credible sustainability overview in a situation where large companies need consistent and reliable value chain data.
Start your VSME reporting today with Aila’s tool.