How does the value-chain cap work in the VSME?

How does the value-chain cap work in the VSME?

Short answer: If a company applies the full VSME, larger business partners cannot demand sustainability information beyond it; this protects SMEs from excessive data requests[22].

The EU’s Omnibus package aims to ensure SMEs are not burdened with endless ad-hoc data collections. The VSME therefore defines a “value-chain cap”: if the full VSME (base and comprehensive module) is applied, companies do not have to provide extra ESG information when customers or investors request it[22]. The base module alone is not enough—the full standard must be used for the cap to apply[22].

Sources: [22] VSME FAQ: Voluntary sustainability reporting for SMEs I Tanso Blog