VSME

The Voluntary SME Standard (VSME) is a voluntary reporting standard that helps small and medium-sized enterprises (SMEs) in the EU document their sustainability activities and goals. This standard aims to support SMEs that are indirectly affected by the Corporate Sustainability Reporting Directive (CSRD).

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The VSME Standard was developed as a simplified and practical framework for small and medium-sized enterprises (SMEs) facing increasing sustainability reporting requirements. While larger companies fall directly under the Corporate Sustainability Reporting Directive (CSRD), smaller businesses are often affected indirectly—for example, through supply chain requirements or financial institutions.

Structure of the VSME standard

The VSME Standard consists of two modules, offering different levels of reporting depth:

1. Basic Module

• Includes 11 disclosure requirements covering key environmental, social, and governance (ESG) aspects.
• Ideal for SMEs new to sustainability reporting.
• Focuses on core topics such as energy consumption, CO₂ emissions, social responsibility, and business ethics.

2. Comprehensive Module

• Adds 9 additional disclosure requirements for companies seeking deeper insights into their sustainability strategy.
• Covers supply chain responsibility, detailed climate targets, and biodiversity aspects.

Why was the VSME standard developed?

• The CSRD mandates sustainability reporting for large companies, indirectly impacting SMEs.
• Many suppliers and partners increasingly require ESG data from SMEs to meet their own reporting obligations.
• Banks use sustainability criteria to assess credit risks, increasingly relying on CSRD-compliant reports.

With the VSME Standard, SMEs can report voluntarily, meeting market expectations without fully complying with the complex ESRS requirements.

For manufacturing companies, adherence to sustainability standards is crucial to meet the expectations of business partners and banks. The VSME Standard enables these companies to present their sustainability efforts transparently and in a standardized manner, strengthening their position in the supply chain and fostering future business relationships.