VSME
Voluntary Sustainability Reporting Standard for non-listed SMEs
The VSME is a voluntary sustainability reporting standard for micro, small and medium-sized enterprises (MSMEs). It offers a practical way of disclosing sustainability issues in a structured manner with a manageable level of effort. The VSME can be a useful starting point, particularly for companies that are not subject to a legal obligation to report on sustainability, as set out in the European Corporate Sustainability Reporting Directive (CSRD) or in the Swiss Code of Obligations (Art. 964 CO).
Last updated: 26.06.2026
The VSME at a glance
VSME stands for Voluntary Sustainability Reporting Standard for non-listed Small and Medium-sized Enterprises. It is a voluntary reporting standard for non-listed SMEs, developed by the European Financial Reporting Advisory Group (EFRAG). In terms of content, the standard is aligned with the topics covered by the European Sustainability Reporting Standards (ESRS), which apply to large companies under the CSRD. At the same time, the VSME is much leaner in structure and tailored to the resources and requirements of smaller businesses. It therefore creates a practical framework for the disclosure of sustainability information while also serving as a value-chain cap by defining which data may be requested from MSMEs along the value chain.
Target group and scope of application of the VSME
The VSME is aimed at companies that are expected to disclose sustainability information in a structured way to customers, banks or investors, but are not subject to CSRD reporting requirements. You can find out which companies are currently required to report under the CSRD in our insight article on the CSRD.
Its relevance for your company
Even if your company is not yet directly subject to reporting requirements today, the demand for reliable sustainability information is growing noticeably. Investors, banks, customers and business partners increasingly expect transparent and comparable data. This is especially relevant if your company is part of the supply chain of large or internationally active businesses. The VSME helps you capture the most important sustainability data, structure it meaningfully and communicate it in a targeted way. At the same time, it shows which disclosures customers or partners in the supply chain may request at most (value-chain cap).
There is also a strategic benefit. Based on the data collected, you can develop a sustainability strategy with concrete goals and measures. This means you not only meet the requirements of your stakeholders, but also position yourself as a responsible market participant and strengthen your competitiveness. At the same time, you are ideally prepared for future reporting requirements. As a result, the report becomes not only a response to external requests, but also a tool for your company’s own development.
Structure and content of the VSME
The VSME covers the same fundamental sustainability topics as the ESRS, but is designed in a much more compact way. The standard consists of a Basic Module and a Comprehensive Module. The Basic Module is designed as an entry point and is a pragmatic starting point particularly for micro-enterprises. The Comprehensive Module expands the reporting with more in-depth content, for example on strategy, climate-related risks or additional information typically requested by banks, investors or larger customers. The Comprehensive Module can only be applied together with the Basic Module.
Regardless of the scope selected, the VSME follows clear reporting principles. Disclosures should be relevant, reliable, comparable, understandable and verifiable. From the second reporting year onwards, comparative information for the previous year is required.
Overview of the modules
General information
Basic Module
- B1: Basis for preparation
- B2: Practices, policies and future initiatives for transitioning towards a more sustainable economy
Comprehensive Module
- C1: Strategy: Business Model and Sustainability – Related Initiatives
- C2: Description of practices, policies and future initiatives for transitioning towards a more sustainable economy
Environment metrics
Basic Module
- B3: Energy and greenhouse gas emissions
- B4: Pollution of air, water and soil
- B5: Biodiversity
- B6: Water
- B7: Resource use, circular economy and waste management
Comprehensive Module
- C3: GHG reduction targets and climate transition
- C4: Climate risks
Social metrics
Basic Module
- B8: Workforce – General characteristics
- B9: Workforce – Health and safety
- B10: Workforce – Remuneration, collective bargaining and training
Comprehensive Module
- C5: Additional (general) workforce characteristics
- C6: Additional own workforce information – Human rights policies and processes
- C7: Severe negative human rights incidents
Governance metrics
Basic Module
- B11:Convictions and fines for corruption and bribery
Comprehensive Module
- C8: Revenues from certain sectors and exclusion from EU reference benchmarks
- C9: Gender diversity ratio in the governance body
Distinction from other reporting standards
VSME vs. ESRS
The VSME is technically aligned with the ESRS, but differs significantly in scope and complexity. While the ESRS includes more than 1,000 data points and places a strong emphasis on strategy, targets, actions and impacts, the VSME contains around 100 data points and focuses more on practical ESG metrics and core disclosures. The requirements also differ: under the ESRS, a double materiality assessment is mandatory, whereas under the VSME it is recommended but not strictly required. In addition, the ESRS requires a much more comprehensive view of the value chain, while the VSME focuses more strongly on the company itself.
VSME vs. GRI
The GRI Standards are globally used sustainability reporting standards with a strong focus on transparency regarding an organisation’s impacts on the economy, the environment and people. They are modular in structure and broadly applicable, but were not specifically designed for MSMEs. The VSME is much more focused, aligned with the European context and deliberately tailored to the typical requirements of MSMEs in supply chains and financing processes.
New: From the VSME to the Voluntary Standard (VS)
The VSME forms the substantive basis for the planned EU standard on voluntary sustainability reporting, known as the Voluntary Standard (VS). The European Commission published a draft on this in May 2026, which has not yet been finally adopted. Like the VSME, the proposed VS aims to enable companies not subject to mandatory CSRD reporting to engage in proportionate and standardised voluntary sustainability reporting. Unlike the VSME, which, as a voluntary guideline, has no binding legal effect, the VS is a delegated act.
The VS is also intended to act as a ‘Value Chain Cap’, setting out the maximum amount of sustainability information that large companies subject to CSRD reporting requirements may request from smaller companies within their value chain.
The modular structure of the VSME, comprising a core module and supplementary modules, is to be largely adopted from the VS in order to ensure continuity for companies already working with the VSME. However, it is planned to remove certain data points (e.g. greenhouse gas intensity), simplify others (e.g. biodiversity data) or make them optional (e.g. gender pay gap) . In addition, a clear distinction is to be made between different reporting categories: ‘mandatory’, ‘where applicable’ and ‘voluntary’. Furthermore, the required disclosures for very small enterprises with fewer than 10 employees are to be reduced further.
Your next steps
Clarify relevance
First, assess whether and why the VSME is the right reporting standard for your company. Typical triggers include requirements from large customers, bank requests, financing plans, ESG questionnaires or the desire to manage sustainability more systematically.
Review your data basis
Get an overview of which information is already available and which topics are especially relevant for your company. Energy, HR or waste data is often available at least in part, but not structured in the way required for consistent reporting. Environmental metrics also require greenhouse gas emissions calculations.
Define scope and responsibilities
Decide which reporting scope you want to start with (Basic Module or Comprehensive Module) and who internally will provide, review and approve the relevant information. Especially in smaller companies, a clear and pragmatic process is often more important than an overly ambitious start.
How our services support you
We help you implement the VSME in your company in a practical way and with proportionate effort. We begin by clarifying whether the standard makes sense for your business and which module fits your requirements. We then structure the relevant topics, translate the requirements into a workable data collection process and support you in preparing a consistent report.
For structured data collection, we work with the VSME tool from Sulytics, which can also be used to generate the report in a system-supported way afterwards.
Our support services
Book a free initial consultation.
We invite you to acquaint yourself with us – with no obligation and tailored to your specific requirements.
FAQ
The VSME is particularly suitable for micro-enterprises, small and medium-sized enterprises that wish to provide ESG data on a voluntary basis or that receive requests for such data from customers, banks, investors or larger companies. The standard is particularly relevant for companies that form part of the supply chain of organisations required to report under the CSRD.
No, the VSME is voluntary. However, it may become relevant in practice if customers, banks or investors request sustainability information. In such cases, the VSME helps to provide the requested information in a structured and proportionate manner.
Yes. Swiss companies can also benefit from the VSME, particularly if they have customers, investors or business partners in the EU or are part of international supply chains. The standard can help them respond more efficiently to ESG enquiries and prepare sustainability information in a way that is compatible with European requirements.
The basic module contains the essential information and is intended as a practical introduction to sustainability reporting. The comprehensive module expands the reporting to include additional information that is frequently requested by banks, investors or larger clients. The comprehensive module can only be used in conjunction with the basic module.
Typical data relates to energy consumption, greenhouse gas emissions, water, waste, resource use, biodiversity, workforce composition, health and safety, training, remuneration, and incidents relating to corruption or bribery. The specific information required depends on the module selected and the relevance of the topics to the company.
A formal double materiality analysis, as required by the CSRD, is not mandatory under the VSME. Nevertheless, it makes sense to identify the company’s most important sustainability issues so that the report remains focused, transparent and relevant to stakeholders.
The Value Chain Cap is intended to limit the sustainability information that large, reporting-obligated companies may request from smaller companies within their value chain. The aim is to prevent disproportionate ESG data requests from being made to SMEs and to standardise the requirements more effectively.
As long as the new EU Voluntary Standard has not yet been finally adopted, existing VSME reports do not, in principle, need to be amended. For future reports, however, it is advisable to take the development of the VS into account and to check whether individual data points are to be changed, simplified or made optional.
SuCo supports companies in assessing requirements, selecting the appropriate module, carrying out structured data collection and producing a consistent sustainability report. In addition, we assist companies with CO₂ accounting and the use of suitable tools for system-supported reporting.