What is the VSME?

VSME stands for voluntary sustainability reporting standard for non-listed micro, small and medium enterprises. It was developed by EFRAG and published in December 2024. This standard was originally intended for companies that do not fall under the CSRD reporting obligation but nevertheless wanted to communicate their sustainability performance.

The VSME is suitable for all companies that are not subject to the CSRD reporting obligation but would nevertheless like to report voluntarily or receive requests about ESG data from their stakeholders. The VSME has a significantly smaller scope and therefore requires significantly fewer resources from the companies. This information can then be used by different stakeholders, such as banks and investors. This means that their queries can be answered easily, as they are made uniformly on the basis of the VSME.

The VSME is divided into two modules – the Basic Module and the Comprehensive Module. The Comprehensive Module builds on the Basic Module. Thus, the Comprehensive Module cannot be used without the Basic Module. The modules are subdivided into general information and information relating to the various ESG areas.  

The Basic Module is recommended to companies that are still at the beginning of their ESG journey and want to take the first step. The Comprehensive Module is broader, and the data from it is relevant to banks and investors, for example, but also to customers and business partners.  

Strategies and objectives are also queried in this module. The Basic Module is primarily concerned with key figures. No double materiality assessment is intended for the VSME. In this context, the “if applicable” principle is used. This allows companies to assess whether the data is relevant to them or not without a formal process. However, due to the lack of a process, myclimate recommends that at least a brief double materiality assessment be carried out. This makes it clear which issues are actually relevant to the company.  

At myclimate, we also recommend getting to grips with both modules. The data is not only relevant for external stakeholders, but also gives the company itself an overview of the current ESG situation within the company.

The European Sustainability Reporting Standards (ESRS) and the voluntary standard for non-listed micro, small and medium enterprises (VSME) differ in scope and requirements: 

Number of data points: 

• ESRS: Contains more than 1,000 data points. The focus is also on strategies, as well as measures and objectives.  
• VSME: Includes significantly fewer data points to minimise the reporting burden on SMEs. There are around 100 data points. The focus is more on ESG key figures. 

Double materiality assessment: 

• ESRS: Requires a mandatory double materiality assessment that takes into account both the impact of the company on the environment and society and the financial sustainability aspects.
• VSME: Although not mandatory, myclimate recommends a simplified analysis to identify relevant sustainability topics in a targeted manner. 

Consideration of the value chain: 

• ESRS: Requires a comprehensive view of the entire value chain, including upstream and downstream activities.
• VSME: Places less importance on a detailed analysis of the value chain, which shifts the focus to internal processes within the company. 

Do you need support in creating your VSME report? 
Then take a look at our sustainability reporting service – we’ll guide you every step of the way. VSME data can be entered and a report created in our myclimate EcoCloud. 

_{Sources:
https://www.efrag.org/en/projects/voluntary-reporting-standard-for-smes-vsme/concluded} 

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