CSRD, ESRS and VSME: what is the difference?
Three acronyms that are used interchangeably. One of them applies to you.
CSRD — the obligation, and who it applies to
The CSRD is the European directive that requires large companies to report on sustainability. Since the simplification of February 2026, it applies to companies with more than one thousand employees and more than 450 million euro in turnover.
If you fall well below that, you do not have a reporting obligation yourself. You will encounter it through your customers.
ESRS — how those large companies report
The ESRS are the standards that set out exactly what must be reported. They are extensive and detailed, and they are written for companies with a department that has the time for it.
You do not need to know them. The only moment you encounter them is when a customer passes on their own ESRS obligation in a questionnaire.
VSME — the light version, and your limit
The voluntary standard for SMEs. Limited in scope, and since March 2026 also the maximum of what your customers may demand from you.
If you want to know one of these three, this is the one.
Frequently asked questions
Am I subject to the CSRD?
Almost certainly not: the threshold is more than one thousand employees and more than 450 million euro in turnover. If you are in doubt, our free check will give you a definitive answer.
Why do I hear so much about the CSRD then?
Because the obligation lies with the large companies and they pass the questions on to their suppliers. For you, the consequence is visible without the obligation being so.
This is explanation, not advice about your own situation. esgia.eu does not assess your company and provides no assurance.