With almost three-quarters of shippers (72%) using ESG goals as part of their RFP processes and countries introducing ambitious emissions reduction targets, sustainability has never been more important for transport and logistics companies.
To get companies to start measuring and reporting on their sustainability performance, the EU has introduced a raft of sustainability regulations over the past few years. One of these regulations was the Corporate Sustainability Reporting Directive (CSRD).
However, when this was first introduced, it was met with a lot of backlash from companies saying that the requirements were too complex and would drain their resources. Instead of steamrolling ahead with the original CSRD timeline, the EU listened to this feedback and proposed the Simplification Omnibus Package in early 2025, which aims to simplify CSRD reporting and avoid placing an excessive admin burden on SMEs.
In this article, we’ll explain the CSRD, the voluntary standard that the EU later introduced (VSME), and share how transport and logistics companies can start reporting under both.
What is the difference between CSRD and VSME—and how do you know which is relevant for your company?
The main difference between CSRD and VSME is that the CSRD requires mandatory reporting for companies that fall within its scope, whereas the VSME is a voluntary standard that simplifies sustainability reporting for smaller companies.
What is CSRD?
The CSRD is a directive that requires certain companies to report on how they impact the environment, and which climate and ESG risks may affect their business. Its full name is the Corporate Sustainability Reporting Directive, and it was introduced in 2021 to replace the (NFRD) Non-Financial Reporting Directive and extend reporting obligations to approx. 50,000 companies.
However, the EU has since proposed a weakening of the CSRD requirements in the ‘Simplification Omnibus package’ to combat concerns about the CSRD placing an excessive admin burden on smaller companies. While final guidance on the future of CSRD reporting requirements is yet to be finalized, it’s likely to remain in place for large companies.
What is VSME?
The VSME is a voluntary standard that aims to simplify how non-listed small and mid-sized companies not in the scope of CSRD provide sustainability data to their larger clients, supply chain partners, investors, or even financial institutions.
The VSME Standard was approved in late 2024, and is split into two modules that comprise different environmental, social and governance metrics:
- Basic Module: this is the target approach for micro-companies and constitutes a minimum requirement for SMEs.
- Comprehensive Module: this goes above and beyond the datapoints in the Basic Module by including additional metrics which are likely to be requested by banks, investors and corporate clients of a company.
By its nature, the VSME is a voluntary standard so it is not mandatory for companies of any size. However, with 56% of shippers saying that they are prepared to terminate contracts if sustainability objectives are not achieved, it is debatable whether the standard is really voluntary if you want to win contracts.
How the EU’s Simplification Omnibus proposal will change CSRD in 2025
The Omnibus packages aim to achieve at least a 25% reduction in administrative burdens for large companies, and at least 35% for SMEs, by postponing and amending the CSRD. If adopted, the packages will also change the CSDDD, several Taxonomy acts, CBAM, and the InvestEU Regulation, but we’re focusing on the CSRD in this article.
The main changes to the CSRD will be:
- Postponed reporting requirements to 2028 for companies that are due to report in 2026 and 2027 (so-called wave 2 and 3 companies)
- Removal of approx. 80% of companies within its scope
- Reduction of burdens and trickle-down effects for SMEs and small mid-caps by limiting the amount of information that may be requested by large companies (“Value chain cap”)
- Revision of the ESRS (which sets the guidelines for reporting under CSRD) to reduce the number of data points, clarify provisions, and improve its consistency
When the EU Omnibus Packages will enter into force
The delayed application of the sustainability reporting (CSRD) rules under the Simplification Omnibus was endorsed by the European Parliament in April 2025. The next step is for the Parliament to work on a directive changing the content and scope of these rules, and for the Council to formally approve the draft law. We’ll keep this article updated as new details on the timeline of changes come to light.
What is the ESRS and how does it fit into the CSRD and VSME?
The European Sustainability Reporting Standards (ESRS) are the official reporting standards that define what companies need to report under the CSRD. Think of them as the rulebook that explains which data points you need to disclose, how to structure them, and what level of detail is expected for CSRD-bound companies.
There are currently 12 ESRS standards covering environmental, social, and governance topics. The standards are also aligned with the approach of the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) to maintain consistency between EU and global standards and to prevent unnecessary double reporting by companies.
If you’re a logistics provider or carrier, some of the most relevant ESRS topics will likely include:
- Greenhouse gas emissions (Scope 1, 2, and 3)
- Energy use and efficiency
- Pollution and waste management
- Working conditions and human rights across your supply chain
And if you’re out of scope of the CSRD, then the ESRS is still relevant for you, as the VSME is designed to align with the ESRS, but just with less complexity. That also means if you’re using the VSME today and are required to report under the CSRD at a future date, you’ll already be well prepared for most of the ESRS topics.
Also, don’t forget that the proposed Omnibus packages also aim to streamline the ESRS, making sustainability reporting under both CSRD and the VSME easier for companies of all sizes.
Determining if CSRD applies to your company
The CSRD applies to a broader range of companies than the previous NFRD did, including some that aren’t even based in the EU. But the Simplification Omnibus will mean that smaller companies don’t directly fall under its scope.
CSRD criteria under the original CSRD
Under the original CSRD, your company is in scope of the CSRD if it is listed on an EU-regulated market (unless you’re a micro-enterprise). Or, you meet at least two of the following:
- Over 250 employees
- More than €40 million in annual revenue
- More than €20 million in total assets
Don’t forget that these criteria apply to both EU-based companies and EU subsidiaries of non-EU groups. And from 2028, non-EU companies would also need to report under CSRD if they have >€150 million in annual revenue from the EU, and have at least one EU subsidiary or branch.
CSRD criteria if the Simplification Omnibus enters into force
If the Omnibus proposal is adopted into law, the CSRD scope would be reduced to the following criteria:
- Over 1,000 employees
- More than €50 million in annual revenue OR a balance sheet above €25 million
It’s estimated that this would reduce the number of companies in the CSRD scope by 80%.
How to prepare for CSRD reporting
Even though it may seem that the reporting deadlines are likely to be a few years away (or 2028 to be specific), there are plenty of things you should be starting now to avoid a stressful, resource-intensive first reporting cycle. This includes:
- Appoint a CSRD Lead: select someone who will lead CSRD for your company, and loop in relevant personnel from different departments who can support the CSRD preparation, data gathering, and actual reporting.
- Get familiar with the ESRS: the European Sustainability Reporting Standards provide guidance on the actual datapoints and information you’ll need to include in your reports. These standards cover a wide range of topics, but for logistics companies, some of the most relevant will likely include:
- Greenhouse gas emissions (Scope 1, 2, and 3)
- Energy use and efficiency
- Pollution and waste
- Working conditions and human rights across your supply chain
- Map your supply chain and identify high-risk areas: evaluate your current value chain and figure out what activities or supply chain partners hold the most risk of harming the environment.
- Decide how you’ll collect and consolidate sustainability data: explore your options for accurately gathering data (tools like BigMile’s carbon accounting software make this quicker, more transparent, and more accurate).
- Conduct a double materiality assessment: carry out a double materiality assessment to understand how your business impacts people and the planet (‘impact materiality’), and how sustainability risks affect your business (‘financial materiality’).
It may seem daunting to start preparing for the CSRD, but by taking a step-by-step approach, you can get prepared in time, and you may even see some benefits in the meantime (but more on that later).
Why you should follow VSME if your company is not within the CSRD’s scope
With 80% of companies expected to be removed from the CSRD scope if the Omnibus packages enter into force, many of these companies are trying to figure out what they should do next. And that’s exactly where the VSME comes into play.
As we already covered, VSME is a voluntary standard with two modules–Basic Module and Comprehensive Module–that specify the environmental, social and governance metrics that companies should include in their sustainability reporting.
These metrics range from energy and greenhouse gas emissions to climate risk mitigation measures to the gender balance ratio. The VSME guidance document walks companies through each metric in detail so we recommend checking that out.
But why should you invest time and resources into following the VSME when it’s just a voluntary standard? You may be thinking it’s mainly environmental reasons, but there are also business benefits, including:
1. Gain a competitive advantage in tenders
Most purchasers are now including sustainability metrics in their tender eligibility and scoring criteria, especially large corporations and public sector organizations. By adopting the VSME standard, companies can report on their sustainability performance in a standardized format that is easily understandable and comparable by the purchasing entity.
This leads to higher scoring in sustainability categories, and thus a greater chance of winning the contract. Proactively using the VSME also makes securing certifications like the CDP or the CO₂ Performance Ladder a whole lot easier.
2. Retain existing clients
Following the VSME doesn't just help win new clients, it also helps retain your existing clients by standardizing the data points you share with clients, which simplifies their own VSME, CSRD, and other reporting on their value chain.
It also demonstrates your commitment to transparently reporting on your performance and offering more sustainable options e.g. low emissions transport modes. This helps strengthen your brand’s reputation as a leader in sustainability, which in turn builds customer loyalty.
3. Improve access to green financing
Banks and investors are increasingly considering ESG (Environmental, Social, and Governance) factors in their decision-making processes. By aligning with the VSME standard, SMEs can provide standardized ESG data, potentially improving their access to financing and favorable loan conditions.
4. Reduce your carbon footprint and costs
Regularly reviewing and reporting on sustainability metrics helps you identify opportunities to improve your performance. These can be quick-win initiatives like switching electricity suppliers to a greener provider, or more substantial changes like replacing your diesel vehicles with electric vehicles.
And the good news is that by reducing your carbon footprint, you often also reduce your costs. Common cost savings include lower energy costs and avoided carbon taxes.
5. Stepping stone for CSRD and future compliance requirements
While sustainability reporting requirements will be simplified for many companies with the Omnibus packages, it’s still likely that companies that are not legally required to report now may have to in the future.
This could be because these companies grow so much that they meet the CSRD criteria, the CSRD criteria changes, or new regulatory requirements are introduced. Either way, following the VSME is a great stepping stone for companies to get started with sustainability reporting so they’re prepared for whatever comes down the line.
How carbon accounting software simplifies CSRD and VSME reporting
If you’re getting started with the CSRD or the VSME, then solutions like BigMile’s carbon accounting software make collecting, analyzing, and reporting on your data much easier, faster, and more accurate.
Our carbon accounting software can help you easily track, calculate, and report emissions while ensuring full alignment with leading industry standards like the GLEC Framework, ISO 14064, and ISO 14083.
With BigMile, you can:
- Automatically collect and analyze emissions data
- Get data-driven insights on how to reduce your emissions
- Generate reports that meet EU reporting requirements
- Transparently provide emissions data to your customers
Transport and logistics companies like De Rijke Group are using BigMile to become leaders in sustainability and win new business, as Martijn Scheffers explains:
“We are among the top 3% worldwide in terms of sustainability assessments. And that's also because we have our CO2 management well in order now. So, where we initially stood at zero, we have quickly developed a very robust CO2 framework. We can now map everything out accurately thanks to BigMile’s platform.”
Want to learn more about how we can help you monitor your emissions to support compliance with the CSRD or alignment with the VSME? Book a call with one of your experts.
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