Which Sustainability Reporting Standard Applies to Your Company?(CSRD, VS & VSME)

Companies in Scope of the CSRD

Companies Reporting under the Voluntary Standard (VS)

Micro, Small and Medium-Sized Companies Using the VSME Standard

Make Your Double Materiality Assessment Simple

As sustainability reporting requirements continue to evolve, many companies are asking the same question: Which reporting framework applies to us? The answer depends on your company's size, legal obligations, and stakeholder expectations.

1. Companies in Scope of the CSRD

Companies with more than 1,000 employees and annual turnover above €450 million fall within the current CSRD reporting scope (following the latest legislative developments).

These companies are required to prepare a sustainability report in accordance with the European Sustainability Reporting Standards (ESRS).

A key starting point is the Double Materiality Assessment (DMA). This assessment identifies the sustainability topics that are material from both:

• an impact perspective (how the company affects people and the environment), and

• a financial perspective (how sustainability matters affect the company).

The results of the DMA determine which ESRS disclosure requirements the company must report on.

2. Companies Reporting under the Voluntary Standard (VS)

Companies below the CSRD thresholds that are not legally required to report—but receive sustainability information requests from customers, banks, investors, or business partners—can use the Voluntary Sustainability Reporting Standard (VS).

The VS provides a practical, proportionate framework for communicating sustainability information without the complexity of full ESRS reporting. While a formal Double Materiality Assessment is not mandatory, companies are encouraged to focus on the sustainability topics that are most relevant to their business and stakeholders.

3. Micro, Small and Medium-Sized Companies Using the VSME Standard

The VSME Standard is designed for companies with fewer than 250 employees that want to communicate their sustainability performance in a simple, structured, and credible way.

A Double Materiality Assessment is not mandatory under the VSME. However, conducting one offers significant benefits:

• identify the sustainability topics that matter most,

• respond more effectively to customer and supply chain requests,

• strengthen transparency and credibility with business partners,

• prepare for future regulatory and market expectations.

Make Your Double Materiality Assessment Simple

Whether you are preparing for CSRD compliance or voluntarily reporting under the VS or VSME, a well-structured Double Materiality Assessment helps you focus on what truly matters.

With Caribou – ESG Toolbox, you can complete your DMA through an intuitive, user-friendly workflow that enables you to:

• engage internal and external stakeholders,

• select from all ESRS sustainability topics,

• assess impacts, risks, and opportunities using a comprehensive IRO library,

• create a structured, audit-ready foundation for your sustainability reporting.

Ready to simplify your Double Materiality Assessment? Discover Caribou – ESG Toolbox and experience a faster, more collaborative, and intuitive approach to sustainability reporting.