VSME Reporting
The Voluntary Sustainability Reporting for Small- and Medium-sized Enterprises (VSME) is a voluntary guideline that helps smaller companies report transparently on their sustainability performance. It aligns with key themes such as emissions, circularity, biodiversity, water use and impact in the value chain. Even without a CSRD requirement, the VSME allows companies to work in a structured way toward better data collection and reporting. This creates alignment with the requirements that larger, CSRD-compliant companies place on their suppliers.
What is the VSME?
The VSME (Voluntary Sustainability Reporting Standard for SMEs) is a voluntary reporting standard that EFRAG submitted to the European Commission on December 17, 2024. The Commission officially adopted the standard on July 30, 2025. It is intended for unlisted micro, small, and medium-sized enterprises that are not subject to the CSRD but are increasingly required to provide sustainability data to banks, investors, or larger customers who are subject to the CSRD.
An important feature: there is no mandatory dual materiality analysis. This was initially included in an early draft version but was removed from the final standard. Instead, the VSME operates on an “if applicable” principle: a company reports only on the elements that actually apply to its situation.
The Modules
The VSME consists of a Basic Module and an Comprehensive Module. The Basic Module is a prerequisite: you can only apply the Comprehensive Module in addition to the Basic Module, not in place of it. If you choose a module, you should, in principle, apply it in its entirety, with the understanding that individual components may be omitted if they are not applicable.
Basic Module
General
B1 Basis for Preparation (legal form, NACE sector code, total assets, revenue, number of employees, country, locations, certifications)
B2 Practices, Policies, and Future Initiatives
Environment
B3 Energy and Greenhouse Gas Emissions (Scope 1 and 2)
B4 Air, Water, and Soil Pollution
B5 Biodiversity
B6 Water Consumption
B7 Resource Use, the Circular Economy, and Waste
Social
B8 Workforce: General Characteristics
B9 Health and Safety
B10 Compensation, Collective Bargaining Agreements, and Training
Governance
B11 Convictions and Fines for Corruption and Bribery
Comprehensive Module
General
C1 Strategy: Business Model and Sustainability-Related Initiatives
C2 Detailed description of practices, policies, and initiatives
Environment
C3 Greenhouse Gas Reduction Targets and Climate Transition
C4 Climate Risks
Social
C5 Additional staff characteristics
C6 Human Rights Policy and Processes
C7 Serious human rights incidents
Governance
C8 Revenue from certain sectors and exclusion of EU reference benchmarks (weapons, tobacco, fossil fuels, etc.)
C9 Gender balance on the board
What is your ambition?
Some companies are primarily interested in having the VSME processed quickly and accurately: the correct data points, neatly delivered to customers and suppliers.
Other companies, on the other hand, want to use that reporting as a stepping stone toward a broader sustainability strategy, with a materiality analysis (DMA) that shows where the real risks and opportunities lie for them.
We offer both. From concise, efficient reporting to a narrative that also showcases what you stand for. With VSME+, we add a DMA to the standard reporting, so you’re not just reporting—you also know what to focus on.
Wondering which level is right for your company? We’d be happy to help you figure it out.
