It is a limit set by Annex II to Delegated Regulation (EU) 2026/1560: a company subject to the CSRD cannot require a company with 1,000 employees or fewer in its value chain to provide more information than this voluntary standard, derived from the VSME, specifies. It protects SMEs receiving requests from customers or suppliers subject to the ESRS.
Read the source article: Revised ESRS 2026: choose your standards before year-end