VSME: brief and compact
The VSME, Voluntary Sustainability Reporting Standard for SMEs, is aimed at all companies that do not fall under the CSRD and are therefore not required to conduct the Double Materiality Assessment according to the ESRS. The standard serves as a foundation for all those who nevertheless wish to publish a sustainability report voluntarily.
This standard provides a good data point basis to meet the expectations of various stakeholders. In particular, Scope 1-3 emissions are becoming increasingly important.
Helpful tools for your sustainability report
VSME Knowledge
1. What is the VSME?
The VSME (“Voluntary Sustainability Reporting Standard for non-listed SMEs”) is a voluntary European sustainability reporting standard developed by EFRAG for small and medium-sized enterprises that are not directly subject to the CSRD reporting obligation. The aim is to provide SMEs with a practical, uniform framework for ESG reports, but without the complexity of the ESRS and without a Double Materiality Assessment, yet still with clear requirements.
With the planned EU Omnibus package, the standard becomes even more important: the scope of application is to be extended in future to all companies with fewer than 1,000 employees. This makes the VSME the central reference point for sustainability inquiries along the value chain (“trickle-down effect”).
Significance of the VSME for companies
- Customers, banks, and business partners are increasingly demanding ESG information.
- Even companies not subject to CSRD are under data and evidence pressure.
- The VSME provides an upper limit for requested sustainability information while creating legal certainty.
2. How is the VSME structured?
Basic Module
- comprises 51 data points (B1-B11)
- forms the minimum standard
- ideal for micro-enterprises or SMEs with limited resources
Comprehensive Module
- comprises between 42 and 50 additional data points (C1-C9)
- for companies that want to provide more detailed insights
- extends the report with additional environmental, social, and governance aspects
Content Focus Areas
- Environment (e.g., energy, emissions, resources)
- Social (e.g., working conditions, supply chain)
- Corporate governance (governance structures)
Some disclosures are mandatory, others follow the “if applicable” approach. These consequently only need to be reported if they are relevant to the company.
3. How should reporting be done?
The VSME provides clear structural guidelines, but no rigid format. What matters is:
Transparency and traceability
A report should disclose:
- Which topics affect the company?
- What data is available and how was it determined?
- What progress or challenges exist?
Systematic data collection
A structured process is recommended:
- Create orientation & clarify responsibilities
- Narrow down relevant topics
- Collect & prepare data
- Structure and write the report
- Communicate results
Optional Double Materiality Assessment
Nevertheless, it can be useful to align reporting strategically. Should it be desired, we are happy to support its implementation.
4. what aids and tools are available?
1. New VSME digital tool (BMWE/BMDS)
An officially launched, free tool facilitates:
- Data collection
- Structuring
- Creation of a complete VSME report
2. DNK platform
The German Sustainability Code integrates both VSME modules into its platform, including a completeness check.
3. Industry guides & VSME templates
Some institutions provide practical sample reports and guides. With our VSME Word template or the VSME data point list, valuable time can be saved.
5. VSME completed: What comes next?
Upon completion of the report, the voluntary standard opens up new opportunities:
Improved data basis for strategic decisions
A structured ESG overview helps identify risks and seize opportunities.
Relief from ESG inquiries
Through the upper limit function, standardized information becomes reusable multiple times. For example, with customers, banks, or partners.
Perspective: Development toward ESRS
The VSME can be an entry point.
Companies that later need to meet CSRD or ESRS obligations already have a solid foundation.
Continuous improvement
Sustainability reporting is a process. Regular updates, improvements, and monitoring therefore make sense, and effective measures should be implemented. Improving GHG accounting, especially Scope 3 calculation, can also be strategically very valuable.
Further reading and links
Smart tools for your ESG reporting!
6. Frequently Asked Questions (FAQ)
1. Is the VSME mandatory?
2. For whom is the VSME worthwhile?
Especially for:
- SMEs without CSRD obligation
- Suppliers to large companies
- Businesses with ESG inquiries from banks/customers
3. Do I need a Double Materiality Assessment?
4. How many data points does the VSME comprise in total?
5. Can I create the report digitally?
6. Is CO2 accounting according to the GHG Protocol mandatory?
Disclosures on Scope 1 and Scope 2 emissions are required. Scope 3 can be reported optionally. Depending on the level of ambition, it therefore makes sense to integrate a valid calculation of the footprint.
How can CSR-Tools support me?
We are happy to support you with your VSME report through, for example, a VSME workshop, a template for your report, or on the topic of GHG accounting. Please contact us for individual inquiries or visit our services page.
