VSME, or the Voluntary Sustainability Reporting Standard for non-listed SMEs, is a voluntary sustainability reporting standard specifically designed for small and medium-sized enterprises. It is a clear and flexible reporting framework that provides companies with tangible benefits to enhance their competitiveness.
Reporting models
Basic Reporting
The basic reporting level constitutes the minimum requirements for VSME reporting and is mandatory for all companies. This level focuses on essential information and includes, for example:
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The company's emission data, such as its carbon footprint
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Basic information about the workforce
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Data related to occupational health and safety
Basic reporting is an excellent starting point for companies taking their first steps in making their sustainability efforts visible. It offers a practical way to begin reporting without requiring significant investments or heavy administrative work.
Comprehensive Reporting
The comprehensive reporting level builds upon the basic level, offering a more detailed view of the company’s sustainability efforts. It includes, among other things:
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A climate risk assessment, helping the company identify and manage risks associated with climate change
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Emission reduction targets, demonstrating the company’s commitment to climate action
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The company’s policies and processes for respecting human rights
Comprehensive reporting provides companies with an opportunity to showcase advanced sustainability work and build stronger trust among stakeholders. It is a recommended choice for companies aiming to position themselves as leaders in sustainability or those required to deliver more in-depth reporting, such as within their value chain.
VSME supports sustainable competitiveness
VSME Supports Sustainable Competitiveness VSME reporting provides companies with an opportunity to stand out in their competitive landscape. Through voluntary sustainability reporting, a company’s operations become more transparent, which helps build trust among various stakeholders, such as customers, financiers, and partners. Reporting is also an excellent tool for strategic business development, far beyond a mere documentation exercise. With comprehensive VSME reporting, companies can, for instance, highlight how their strategies and business models incorporate sustainability and identify the most significant climate risks affecting their operations.
Designed to Meet Partners’ Information Needs
Designed to Meet Partners’ Information Needs VSME is tailored to meet the data requirements of financiers and other business partners, such as larger companies within the supply chain. It is envisioned as a standard reporting framework for the information that companies under the Corporate Sustainability Reporting Directive (CSRD) are expected to request from their value chain partners. Furthermore, financiers and investors particularly value standardized, metrics-based reporting, where a sustainability report is not just a lengthy document filled with polished statements and visuals. VSME effectively addresses this need by emphasizing measurable indicators.A Cost-Effective and Simplified Alternative
One of VSME’s key advantages is its simplicity. Its structure is significantly more straightforward compared to its “big sibling,” the European Sustainability Reporting Standards (ESRS). The standard is also easier to navigate, offering clear guidance and examples for compiling reports and calculating various metrics. Sustainability reporting doesn’t have to be complicated or expensive.
While the regulatory environment around sustainability is undergoing significant changes, the importance of responsible and sustainable practices is only growing. At Greenstep, we have already gained experience in preparing VSME reports and can help your company navigate this reporting standard with ease. Book a time, and let’s create your VSME report efficiently and cost-effectively!