VSME explained: the voluntary ESG reporting standard for small and mid-sized companies
What the VSME voluntary sustainability reporting standard is, who it is for, what the Basic and Comprehensive modules cover, and why customers and banks ask for it.
Most small and mid-sized companies are not required to report under the CSRD, yet many receive ESG questions from customers, banks and investors. The VSME is a voluntary standard designed to answer those requests with one consistent report. It was developed by EFRAG, the body that also advises on the ESRS, for micro, small and medium-sized companies that are not listed.
Who it is for
Non-listed companies that want a simple, recognised way to share sustainability information, especially suppliers to large companies that report under the CSRD. After the 2026 Omnibus changes, smaller companies in a reporting company’s value chain have more protection against excessive data requests, which makes a standard format more useful.
Two modules
- Basic Module: a core set of disclosures for companies starting out, covering the business model and key environmental, social and governance data such as energy, emissions, workforce and basic conduct policies.
- Comprehensive Module: adds strategy, targets, transition plans and more detail on risks and governance, useful when a bank or large customer asks for more.
Check the current text on EFRAG’s website for the latest version and templates.
Why use it
- One report answers many questionnaires.
- Less effort than the full ESRS, built for small teams.
- Compatible with the bigger picture. It is aligned with the ESRS, so you can grow into fuller reporting.
- Credibility with banks and customers.
Getting started
- Decide the module that fits the requests you receive.
- Collect data: energy bills, fuel, employee numbers, policies.
- Calculate emissions. See Scope 1, 2 and 3 explained and the free carbon footprint estimator.
- Write and publish the report and share it with the customers and banks that ask.
Tools and help
Some reporting platforms include VSME templates. Ask vendors directly. Find them in ESG reporting software and ESG consultants.
i-ESG
Seoul-based ESG data and risk management platform with modules for materiality, reporting, supply chain risk and carbon tracking.
VERSO
Munich-based sustainability software and advisory firm covering ESG data management, double materiality, VSME reports and supply chain due diligence.
Planted
German startup offering an AI-assisted ESG management platform for carbon accounting and CSRD reporting.
Pulsora
ESG management platform for collecting sustainability data and preparing framework reports.
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See also who has to report under CSRD and our free sustainability health check.
This guide is general information, not legal, tax or investment advice. Rules change; check the official sources and talk to an adviser before you rely on it.
Related guides
What assurance providers ask for in a sustainability report
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How-to guideHow to prepare your first VSME sustainability report
A practical walkthrough for small and mid-sized companies answering customer and bank requests with a VSME-style report: which module, what data, who owns what, and how to avoid over-reporting.
How-to guideHow to prepare your first BRSR report (India)
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