Your contact person
Dr Denise Ott
The requirements for sustainability reporting are growing – even for small and medium-sized enterprises (SMEs). Although unlisted SMEs are not subject to the mandatory Corporate Sustainability Reporting Directive (CSRD), they still need to provide various sustainability information – whether for customers, banks or investors. This is precisely where the Voluntary Sustainability Standard for SME (VSME) comes in: it offers a voluntary, pragmatic and SME-friendly solution for preparing and communicating sustainability information in a structured way.
In this blog article, we explain the objectives of the VSME, provide an overview of the final draft, present the two modules (Basic and Comprehensive) and give tips on how to prepare a report.
Voluntary Sustainability Standard for SME (VSME) The new voluntary standard for non-listed SMEs was submitted to the European Commission by the EFRAG (European Financial Reporting Advisory Group) in December 2020. It was developed in an extensive consultation process involving SMEs, trade associations, banks and audit firms. The VSME is based on the European Sustainability Reporting Standards (ESRS) for large companies, but is adapted proportionately to the needs of smaller businesses. |
SMEs are increasingly confronted with ESG (Environmental, Social, Governance) requests from business partners, banks and investors. They often have to complete a wide range of questionnaires to provide sustainability information to their financial institutions and partners subject to CSRD – a process that is often costly and inefficient.
The VSME standard is designed to remedy this by:
Standardising sustainability data – providing a clear structure for efficient reporting
Offering future-proofing – preparing companies for increasing regulatory requirements at an early stage
Improving transparency – and thus strengthening the trust of customers and partners
The final VSME draft has now been submitted by EFRAG to the European Commission. (You can download it here: VSME Standard.pdf.)
It comprises two modules:
Both modules follow the ‘if-applicable’ principle: companies only have to provide the information that applies to them, which limits the reporting effort.
This results in two options for VSME reporting:
Record data at an early stage – document and structure existing sustainability measures
Use the Basic Module as an introduction – you can upgrade to the Comprehensive Module at a later date
Use synergies – existing reporting formats such as EMAS or ISO 14001 can be integrated
Involve stakeholders – coordinate with business partners and financial institutions at an early stage
Good to know: To facilitate application and broad market acceptance of the new standard, the VSME is to be accompanied by various online tools, guidelines and information events, which are expected in the course of 2025 (source: EFRAG). The free web platform of the German Sustainability Code (Deutscher Nachhaltigkeitskodex, DNK) is also currently being adapted to facilitate reporting in accordance with the VSME standard.
Our tip: Whether identifying relevant KPIs, collecting ESG data or setting up internal structures – efficient reporting requires planning and time. Those who start early lay the foundation for a smooth reporting process and avoid unnecessary additional work.
As an official DNK training partner, we support you with practical advice – simple, efficient and targeted. Feel free to contact our experts in sustainability consulting at any time.
Text: Carolin Ridder
Your contact person
Dr Denise Ott
EurA AG
T- 079619256-0Max-Eyth-Straße 2
73479 Ellwangen
info@eura-ag.com