VSME Standard
Voluntary reporting standard for SMEs (Small and Medium Entreprises)
The VSME standard is a voluntary sustainability reporting framework designed for non-listed SMEs that fall outside the direct scope of the CSRD for SMEs. While not mandatory, adopting VSME offers a structured pathway to implement SME sustainability reporting in line with the ESRS for SMEs, but with proportionate requirements that reduce administrative burden.
The VSME structure is based on approximately 140 data points, divided into three categories:
- One-third corresponds to existing ESRS data points for SMEs
- One-third reflects simplified ESRS requirements
- One-third consists of newly developed disclosures tailored specifically for micro-undertakings
To accommodate the diverse needs of SMEs, the VSME is organized into two reporting modules:
- Basic Module (B1–B11): establishes minimum disclosure requirements for micro-enterprises and smaller owner-managed businesses. It covers topics such as greenhouse gas emissions, pollution, biodiversity, water use, resource efficiency, circular economy practices, health and safety, and anti-corruption measures.
- Comprehensive Module (C1–C9): designed for SMEs with higher stakeholder expectations, this module adds deeper ESG disclosures, including climate transition targets, human rights policies, and gender diversity in governance.
By adopting the VSME framework, SMEs can strengthen their sustainability credentials, respond effectively to ESG data requests from banks, investors, and supply chain partners, and prepare for future CSRD compliance. Voluntary adoption also gives SMEs a competitive advantage, improves transparency, and helps integrate sustainability into long-term business strategy.
The VSME standard demonstrates how SME sustainability reporting can be both accessible and impactful. By aligning with the ESRS for SMEs, it ensures that even non-listed companies can play an active role in Europe’s sustainability transition.
