New EU development: The VSME standard becomes even more important
The EU is scaling back CSRD requirements — but the VSME standard is becoming more important than ever.
The European Commission's Omnibus proposal from February 26, 2025 has attracted significant attention — particularly because it proposes raising the threshold for CSRD reporting to companies with more than 1,000 employees. This means fewer companies will be directly covered by CSRD, while the VSME standard (Voluntary SME Standard) takes on an even more central role in the ESG landscape.
In the European Commission's Omnibus proposal, the VSME standard is highlighted as the primary reporting tool for small and medium-sized enterprises. The Commission emphasises in their official Q&A that although fewer companies will be directly obligated by CSRD, large companies will continue to require ESG data from their suppliers to fulfil their own reporting obligations — here, the VSME standard is recommended as the most appropriate solution.
This means that even though some companies will no longer be subject to direct legislative requirements for ESG reporting, ESG data will still be necessary to maintain collaborations with large companies, participate in tenders and secure financing.
Why is the VSME standard an advantage?
The VSME standard is designed to make ESG reporting accessible to small and medium-sized enterprises without the extensive requirements that come with CSRD. The standard ensures that companies can deliver relevant ESG data to their customers and partners without going through a heavy compliance process.
The key advantages are:
-
Less administrative burden: The VSME standard makes ESG reporting simple and relevant for SMEs. It removes unnecessary requirements and ensures that companies only report on the most important ESG key figures — avoiding unnecessary administration and complexity.
-
Competitive advantage: The VSME standard ensures structured and transparent ESG reporting, which is crucial for winning new customers, participating in tenders and attracting financing. The standard covers the most essential ESG key figures demanded by customers and banks.
-
Comparability: Standardised data ensures transparency, a common language for ESG and makes it easier to document ESG performance to partners.
North ESG has integrated the VSME standard
At North ESG, we have already implemented the VSME standard in our platform, so our customers can report their ESG data in a simple and efficient way that aligns with EU recommendations.
With this integration, we make it easy for SMEs to document their sustainability data in a format that large companies, banks and investors recognise and demand. This means our users not only meet potential future reporting requirements — they also gain a competitive advantage when winning new customers, participating in tenders or securing financing.
With our AI-supported ESG accounting software, we already automate over 50% of the key figures in the VSME standard.
North ESG is the platform on the market that automates the majority of VSME reporting. This saves companies time on data collection and gives them more time to run a sustainable business.
We make this possible by combining:
-
AI-based ESG calculator: Our solution can automatically collect receipts and invoices from accounting systems like e-conomic and convert them into ESG key figures, significantly reducing manual processes.
-
Integrations with public and private data sources: North ESG automatically retrieves data from relevant sources to make ESG reporting more accurate and comprehensive.
-
User-friendly questionnaire framework: A structured questionnaire ensures that all relevant ESG factors are documented correctly without unnecessary complexity.
In this way, ESG key figures that extend far beyond CO₂ calculations are collected automatically. Companies thus get a simple way to document their sustainability and share relevant ESG information with customers and partners. At North ESG, we help you easily transform data into a tailored, visually appealing ESG report that strengthens your competitive advantage.
Want to know more?
If you want to read more about the VSME standard, you can visit our VSME page or contact us directly. Have questions about how North ESG can help your company make ESG reporting simple and automated? Get in touch — we're happy to help!
/Nicolai from North ESG