VSME: Voluntary sustainability reporting for SMEs
This page provides step-by-step explanations of each VSME module so that your SME can create a sustainability report.
Why creating a VSME sustainability report for SMEs is useful
Many SMEs face ESG questions - from customers, banks or through legislation. The VSME standard is there specifically to make reporting feasible. On this page you will find:
Understanding what the VSME standard is
What it means for your business
Explanation by module
Free guides + templates
One standard for voluntary sustainability reporting
What is VSME (voluntary sustainability reporting)?
The Voluntary reporting standard for SMEs (VSME) is a guideline that helps SMEs prepare voluntary sustainability reporting. It is simpler than CSRD, but structured and future-proof.
Developed in line with European ESG policy, the standard allows small companies to:
make visible their environmental, social and governance impacts,
meet chain obligations from customers or financiers,
and looking ahead to the future of ESG reporting.
You can download the VSME standard here.
📘 Greenreporting has translated the full standard into easy-to-understand steps and automatic calculations that you can complete online. Check out the free guide and sample report here.
Who is the VSME standard intended for?
The VSME standard was developed for unlisted micro small and medium-sized companies. It is relevant to:
Entrepreneurs facing sustainability obligations through customers, banks or industry standards;
Companies that want to work on sustainability themselves ;
Organizations that want to anticipate mandatory sustainability reporting (such as the CSRD), or are no longer covered by the CSRD due to Ombinus legislation.
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What else makes the VSME valuable as a sustainability reporting tool for SMEs?
The VSME is designed to be accessible to non-specialists. This makes it easy to do a report, although it does take some time. Other advantages of the VSME are:
To be used in obtaining financing
Only one more report needed for chain accountability (e.g., by CSRD)
You can start small, and deepen later (from Basic to Comprehensive)
Based on international frameworks such as GRI & EFRAG, and aligns with CSRD
Overview of VSME Base
The basic standard consists of 11 modules that together provide a complete picture of your sustainability approach. Click through below to a detailed explanation of each section:
Introduction - Purpose of the VSME, why it is important, and who should apply it
General:
B2 - Practices, policies and future initiatives for sustainability
Ecological:
B3 - Energy and greenhouse gas emissions.
B4 - Pollution of air, water and soil.
B7 - Resource use, circular economy and waste management
Social:
B8 - General characteristics of the workforce
B9 - Health and safety of workers.
B10 - Compensation, collective bargaining and training.
Governance:
Overview of VSME-Comprehensive
The comprehensive standard consists of 9 additional modules that - on top of the basic standard - provide a more in-depth picture of your sustainability approach. Click below for a detailed explanation of each component:
General:
C1 - Strategy: business model and sustainability initiatives
C2 - Description of practices, policies and future initiatives for a more sustainable economy
Ecological:
C3- GHG reduction targets and climate transition
C4 - Climate risks
Social:
C5 - Additional (general) workforce characteristics.
C6 - Additional information on own staff: Human rights policies and processes
C7 - Serious negative human rights incidents.
Governance:
C8 - Turnover from certain sectors and exclusion from EU reference benchmarks
C9 - Gender diversity in the governing body.
How can you benefit from the VSME?
It is not (currently) mandatory for most SMEs to produce a sustainability report. Yet there are many reasons to do it:
Compliance: With a VSME annual report, meet requirements of business partners
Tenders: You have a better chance of winning tenders with a VSME report (40% of tenders already require ESG info!).
Sustainability: It helps you make short- and long-term sustainability decisions, and see where you can do it most efficiently.
One report: The VSME replaces all questionnaires from your customers and business partners, because they are also encouraged to use the VSME.
New opportunities: You may discover new business opportunities for your company.
Rather not do everything manually?
With Greenreporting, you complete the VSME standard up to 12x faster. Our tool:
Automatically calculates your CO2 emissions (including emission factors)
Instantly generates a report in PDF or Excel
Follows the structure of VSME, with explanations and examples at each step
Automatic, smart calculations and AI in every module
Goes beyond reporting: set goals, and see dashboards for monitoring to become more sustainable- automatically based on your entered data.
Download the free VSME guide for SMEs, including sample report
Everything you need to know to start reporting to the VSME standard today.
Sign up, and receive our complete VSME Basic Guide in the mail for free.
✓ Complete guide in PDF form
✓ Comprehensive explanations and examples to arrive at your first VSME report
✓ Sample report included
Frequently asked questions about the VSME
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No. The VSME standard was created voluntarily by EFRAG (the same body behind the CSRD) for SMEs. Its purpose is to help SMEs report on sustainability in a structured way without having to prepare a full CSRD report.
Note that more and more customers, supply chain partners and financiers do ask for it. -
The CSRD is mandatory for large companies (from ±500 FTEs, listed and other cases) and requires extensive ESG reporting.
The VSME standard is an accessible, simplified guideline for smaller companies. It is less complex, but is consistent with the structure of CSRD. -
Yes. A VSME report shows in a clear and recognized way what your company is doing on sustainability. Increasingly, governments, corporates and municipalities are asking for ESG information in tenders - a VSME report is then a strong answer.
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Basic: you indicate whether you have a policy, what you are already doing, and report your scope 1 and 2 emissions, your waste, and some basic characteristics about your staff, among other things.
Comprehensive: you go deeper into your strategy, risks, governance and performance. This level is especially relevant if you want to embed sustainability more strategically or it is demanded in the supply chain.
Greenreporting supports both levels - depending on the package you choose.
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No problem. The VSME standard is meant precisely as a starting point. You can indicate where you do not yet have a policy or goals, and still deliver a report. This way you show transparency and demonstrate that you are on the move.
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This is not certain. The expectation is that the VSME standard (or some variation of it) will become the norm for SMEs in the next few years, especially if they work with larger organizations covered by the CSRD, as well as in government procurement and bank lending. By starting now, you will be prepared and avoid catching up later.
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No. You specify which topics are relevant to your company. The VSME standard is modular: so you only have to report on what applies to you (with exceptions)
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With Greenreporting, you don't have to figure out the standard yourself. You answer questions in plain language, and our tool:
Automatically calculates your CO2 emissions
Builds a complete report in accordance with VSME
Provides tools, tips and examples
And saves you up to 90% time
Fancy getting started yourself?
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