Value chain cap: scope and protected undertaking status

The cap is a purpose-specific limit on what a CSRD reporting undertaking may ask a smaller supplier for — not a general ban on ESG questions. These guides settle the three scope tests: protected status, requester purpose and the Annex II list, plus the record that evidences them.

Published passport

Current as at 10 August 2026

Reviewed by Dr Ross KurinkoLinkedIn Strategic ESG Advisor · IFRS S1 & S2 / GRI / ESRS expert GRI Certified Global Trainer · PhD, University of Cambridge · ESG-AI expert 15+ years on FTSE 100 & Fortune Global 500 disclosures Canary Wharf, London LRA educational guidance · Not issued or endorsed by European Commission

Edition written against

EU Voluntary Standard (August 2026)

Source check completed on 1 August 2026.

Published

10 Aug 2026

Knowledge Hub guide

Last reviewed

10 Aug 2026

Level 2

Articles in this pillar

EU Value Chain Cap Explained: What Large Companies May Ask Smaller Suppliers to Report

Protected undertakings, Annex II, necessity, within-cap and above-cap requests, supplier rights and practical examples

Decision guide · 11 min Protected Undertaking Test: Does the EU Value Chain Cap Apply to Your Company?

Employee threshold, legal entity, value-chain relationship, self-declaration, group questions and annual reassessment

Decision guide · 10 min Does the EU Value Chain Cap Apply to Banks, Customers and Procurement Platforms?

How reporting, lending, due diligence, product compliance and voluntary procurement purposes change the legal treatment of the same datapoint

Decision guide · 10 min Protected Undertaking Self-Declaration: What Suppliers and Requesters Should Document

A proportionate record for entity identity, value-chain relationship, employee test, reporting period, basis, approval, expiry, correction and requester reliance.

Decision guide · 13 min

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