Voluntary Standard: voluntary sustainability reporting for companies in Switzerland

Key insights

• The Voluntary Standard builds on the VSME standard and supports companies that fall below the thresholds of the revised CSRD.
• The value chain cap applies from 2027 and also protects Swiss suppliers that do not exceed 1,000 employees.
• The draft Federal Act on Sustainable Corporate Governance (NUFG) also provides for a limit on sustainability information in the value chain.
• Unlike the revised ESRS, the VS requires no double materiality assessment and contains 20 disclosure items.

What is the Voluntary Standard and how does it relate to the VSME?

With the adoption of the sustainability reporting standard for voluntary use (Voluntary Standard or VS) by the European Commission, a new chapter of sustainability reporting begins in the European Union. The VS is based on the previous VSME standard published by EFRAG and provides a simplified and proportionate reporting framework for companies that fall below the thresholds of the revised CSRD but still want to report their sustainability information in a structured and transparent way.

The Voluntary Standard could also become more relevant for Swiss companies. Companies that are part of the value chain of EU companies subject to the CSRD in particular may face growing requests to provide sustainability information. The VS gives them a standardised and proportionate reporting framework to prepare relevant ESG data and disclose it consistently to different business partners.

At the same time, Swiss suppliers can benefit from the European value chain cap. For financial years beginning on or after 1 January 2027, it sets the upper limit of sustainability information that companies subject to the CSRD may require, for their sustainability reporting, from business partners that do not exceed 1,000 employees. 

This protection is not limited to companies based in the EU. Information beyond the cap may still be requested, but the requesting company must clearly identify it and point out the right to decline.

Alongside regulatory obligations, market expectations from investors, lenders, customers and public sector clients for transparent and reliable sustainability information are growing. Voluntary reporting under the VS can help companies:

• Meet these expectations
• Reduce the effort of recurring ESG data requests
• Provide relevant information consistently in tenders and financing discussions

As a result, companies can strengthen their position with business partners and open up new business and financing opportunities.

• 20Disclosure items in the Voluntary Standard
• 300Datapoints under the revised ESRS
• 1000Employee ceiling for value chain cap protection

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What are the benefits of the Voluntary Standard for companies outside the CSRD scope?

The VS combines simplified language with pragmatic disclosures and gives smaller companies in particular the flexibility they need. The framework is also characterised by:

• Its modular structure
• Its ease of use
• Simplified requirements for companies with 10 employees or less

With guidance prepared by EFRAG and historically relating to the VSME standard, the VS makes it easier to start voluntary sustainability reporting. However, the VS will not necessarily meet the needs of larger companies outside the scope of the revised CSRD.

Basic Module and Comprehensive Module: how the Voluntary Standard is structured

To reflect different levels of sustainability maturity, the VS comprises two modules:

• Basic Module: sets entry-level ESG information
• Comprehensive Module (optional): sets additional data likely to be required by investors, lenders and business partners

Companies can apply the Basic Module only or combine the Basic and Comprehensive Modules. Applying the VS does not allow a "pick and choose" approach to individual disclosures.

Both frameworks share similar qualitative characteristics and aim to create a consistent link with financial reporting.

Under the revised ESRS, companies present their material sustainability-related impacts, risks and opportunities and how they manage them.

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What is the value chain cap?

The VS serves a dual purpose:

• It provides a voluntary framework for sustainability reporting
• It serves as the value chain cap provided for in the revised CSRD

This protects certain companies from disproportionate reporting demands from CSRD reporting companies.

What are the main challenges when applying the Voluntary Standard?

1. Assessing sustainability maturity: Companies should first assess their level of sustainability maturity. On that basis, they can select the most suitable reporting option and build a clear ESG roadmap.
2. Adopting a long-term and strategic vision: Companies should embrace sustainability as a long-term strategic driver that supports their business goals, contributes to value creation and drives organisational change.
3. Developing a robust data collection strategy: Robust data collection processes are also essential to apply the VS successfully. Companies should make full use of the guidance and support materials available from EFRAG and ensure they collect, monitor and document sustainability data reliably.
4. Communicating sustainability performance: The VS offers more than a reporting framework. Transparent, balanced and clear reporting can build stakeholder trust. Having sustainability information audited further strengthens its credibility.

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FAQ about the Voluntary Standard