VSME stands for the Voluntary Sustainability Reporting Standard for Non-Listed SMEs. It is for unlisted micro, small and medium-sized enterprises that face increasing environmental, social and governance (ESG) reporting requirements and are being challenged to meet business partner, financial institution and investor expectations. The VSME is a proportional alternative to the Corporate Sustainability Reporting Directive (CSRD).
Since the EU unveiled its Omnibus Directive to simplify the bloc’s sustainability-related rules and reporting obligations, the Voluntary Sustainability Reporting Standard for Non-Listed SMEs (VSME) has become more significant.
As environmental, social and governance (ESG) expectations grow, non-listed SMEs face increasing pressure from investors, financial institutions and partners to disclose credible sustainability data. The VSME offers a simplified, proportional alternative to the Corporate Sustainability Reporting Directive (CSRD) for micro, small and medium-sized enterprises.
Our end-to-end services support you across the entire VSME process, from understanding the standard to preparing, verifying and assuring your reports. Whether you're starting from scratch or building on quality, health, safety and environment (QHSE) frameworks, we help streamline compliance and unlock ESG value.
Discover the benefits of our VSME services
- Clarify your sustainability positionStandardized ESG reporting improves transparency, helping you meet stakeholder expectations and build trust.
- Improve financing accessClear, structured disclosures can strengthen relationships with banks and investors.
- Prepare for future regulationGet ahead of potential reporting obligations under evolving EU directives and standards.
- Identify internal ESG opportunitiesSpot performance gaps in energy, water, waste and workforce management.
- Gain a competitive edgeStand out in your industry by showcasing sustainability leadership through verified, credible reports.
A comprehensive range of VSME services
- Tailored support for VSME implementationWe offer guidance and tools to help you understand and adopt the VSME standard, based on your needs and maturity.
- Training and awarenessOur training equips your team to embed VSME-aligned ESG practices and improve internal capabilities.
- VSME report preparation and supportWe support data collection, internal process alignment and preparation of structured VSME disclosures.
- Independent verificationOur ESG KPI verification and assurance services confirm that your reported metrics are reliable and meet standard requirements.
- Third-party assuranceWe provide assurance statements to validate your VSME report, increasing confidence for your partners and investors.
VSME: your first move toward ESG reporting and extending your QHSE function
Our ESG disclosures and sustainability report assurance (SRA) service is ready to help you demonstrate your ESG accountability, accurately and consistently, while our ESG KPI verification and assurance will validate your metrics and target, as well as provide a third-party statement confirming their accuracy and reliability.
Your trusted ESG assurance partner with global reach and local expertise
As a sustainability leader with over 30 years of global experience, we combine deep regulatory knowledge with practical implementation expertise. Through our IMPACT NOW for sustainability portfolio, we deliver tailored support across advisory, training, verification and assurance.
We help you build ESG capabilities, ensure credible disclosures and stay aligned with evolving EU regulations – so you can realize the full benefits of the VSME standard and stand out as a trusted and forward-thinking business partner.
FAQs
The VSME is a voluntary standard for relevant SMEs not subject to the CSRD. It provides SMEs facing growing sustainability data requests from counterparts, such as banks, investors and the large companies they supply to, with a simple reporting tool. The VSME increases efficiency and aids the SME’s participation in the transition to a sustainable economy.
Currently, multiple, uncoordinated ESG data requests create significant preparation costs for non-listed SMEs. The VSME standardizes these requests, decreasing the number of uncoordinated requests. This should support better access to lenders, investors and clients.
The VSME also supports SMEs regarding future mandatory reporting, in line with the CSRD and EU Omnibus requirements.
The benefits are diverse and include:
- Enhanced transparency: standardizing and structuring ESG information increases your organization’s credibility
- Cost-effective and wider access to financing: standardized reporting improves business relations with banks and investors
- Regulatory preparedness: you will be better prepared for possible future reporting obligations
- Competitive advantage: dedication to sustainability can differentiate you in the market
The VSME comprises two modules, to be implemented according to your needs and capabilities. SMEs are no longer asked to perform materiality analysis. The simplification was tested with SMEs and bank representatives, receiving strong support, as it is expected to reduce the reporting burden for SMEs and provide standardized disclosures for the user’s business partners.
Basic module
This is for the smallest enterprises, does not require a double materiality analysis and includes basic ESG information across four areas:
- General information
- Environmental metrics
- Social metrics
- Governance metrics
There are 11 ESG disclosures, all simplified, focusing purely on essential metrics. The basic module is a prerequisite for the comprehensive module.
Comprehensive module
This is for SMEs that must report in more detail and have business partners that expect more detailed ESG data. It adds to the basic module, with nine additional disclosures covering:
- Business model and strategy
- Practices and policies
- Scope 3 greenhouse gas (GHG) emissions
- Climate risks and GHG targets
- Human rights
The VSME’s structure and scope follow the European Sustainability Reporting Standards (ESRS) approach. This allows you to develop competencies, collect relevant data and implement the correct reporting processes.
However, the VSME and ESRS differ in scope, mandatory scope and level of detail because of their differing objectives and target audience.
Mandatory scope and coverage
The ESRS is mandatory for large organizations and some medium-sized listed companies, as dictated by the CSRD. The VSME is voluntary and for non-listed micro and SMEs that wish to report on sustainability more simply.
Scope and detail
The ESRS encompasses numerous topics, such as climate change, social issues and governance. The VSME focuses on key ESG aspects, its basic module requires less data and its comprehensive module is additional, meaning it is more accessible to SMEs.
Double materiality analysis
The ESRS involves a double materiality assessment. The VSME does not include such an assessment, but rather an “if applicable” approach, meaning your company can exclude certain disclosures if they are not material.
Structure and flexibility
The ESRS has a complex structure, with thematic and cross-cutting standards that usually require more resources and knowledge. The VSME only has basic and comprehensive modules, allowing you more flexibility.
The European Financial Reporting Advisory Group (EFRAG) was tasked by the European Commission to develop a voluntary sustainability reporting standard for non-listed micro, small and medium enterprises (VSME). The VSME was published on December 17, 2024.
If you are no longer subject to the CSRD, you have two crucial options:
- If you have started your reporting process, you have no reporting obligation and we can advise you on how to finalize the report. This includes assessing all or part of it
- If you have not yet started the reporting process, you have no reporting obligation and we can advise concerning the VSME, supporting a sustainability strategy, action plan and reporting
Your organization should continue preparing for the EU’s corporate sustainability requirements to unlock value creation and sustainability transformation across your business.
You should always consider the long-term need to shift to more sustainable methods of economic growth. Robust sustainability disclosure regulations will help you unlock value creation through organizational shifts, such as enhanced sustainability performance management and governance, as well as investment prioritization within operations or supply chains.
VSME reporting also helps you improve internally. Many SMEs that participate discover:
- Data gaps in energy or water usage
- Missed opportunities to reduce waste
- Overlooked risks in workforce practice
Therefore, the VSME complements your existing quality, health, safety and environment (QHSE) reports, based on ISO 9001 (quality management), ISO 14001 (environmental management), ISO 45001 (occupational health and safety management) and ISO 50001 (energy management), etc.
Additionally, you do not need to be subject to any regulations to:
- Manage your sustainability and ESG strategy
- Manage your risks and opportunities (climate risks and value chain, etc.)
- Build on your achievements (QHSE, ESG actions, etc.) for a concrete and impactful ESG action plan
- Communicate your successes through simple reporting (VSME)
Materials include:
- The official VSME ESRS version is available and its final version has been released
- Various EFRAG deep-dive videos on the VSME
- We also provide specific VSME training
- EFRAG’s basic VSME reporting tools, including a VSME Digital Template