Eurosif, the European Fund and Asset Management Association and Principles for Responsible Investment published a joint call, in the context of negotiations on the Omnibus Simplification package, for a credible and proportionate voluntary sustainability reporting standard for companies with over 250 employees that would fall outside the Corporate Sustainability Reporting Directive (CSRD) scope. They argue that a minimum voluntary reporting set is needed to ensure financial institutions and investors can access decision-useful sustainability information. The organisations warn that the European Commission proposal could exclude many companies already reporting under the Non-Financial Reporting Directive (NFRD) and CSRD, creating data gaps and market fragmentation. They also say using the VSME framework as the basis for non-SME voluntary reporting is not fit for purpose because it was designed for very small and micro-companies and lacks the granularity and reliability required by larger companies and financial market participants, while its use as a value chain cap could further restrict information available to investors. As an alternative, they recommend grounding the voluntary standard in the revised European Sustainability Reporting Standards (ESRS) to provide scalable requirements and support a transition toward mandatory reporting.
Eurosif 2025-09-18
Eurosif, EFAMA and PRI call for an ESRS-based voluntary sustainability reporting standard for companies outside CSRD
Eurosif, the European Fund and Asset Management Association, and Principles for Responsible Investment advocate for a voluntary sustainability reporting standard for companies with over 250 employees, outside the CSRD scope. They warn the European Commission's proposal may cause data gaps and market fragmentation. The organizations suggest using revised ESRS as a basis for scalability and transitioning to mandatory reporting.