Commission publishes Q&A clarifying value chain cap provisions under Omnibus I

The European Commission published additional explanatory information in a Q&A format clarifying the value chain cap provisions introduced by the Omnibus I Directive. Under these provisions, companies with 1,000 or fewer employees can refuse to provide sustainability information beyond what is specified in voluntary standards (VSME). This guidance helps companies understand their rights and obligations regarding value chain sustainability information requests from larger CSRD-reporting companies. The value chain cap is a key simplification measure designed to reduce administrative burden on smaller companies in the supply chains of CSRD-reporting entities.