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The EU is scaling back the CSRD requirements – but the VSME standard is becoming more important than ever. Read here about the latest developments from the EU and how it can open new opportunities for Danish businesses.
The EU Commission's Omnibus proposal from February 26, 2025 has created significant attention – especially because it proposes raising the threshold for CSRD reporting to companies with more than 1,000 employees. This means that fewer companies will be directly subject to CSRD, while the VSME standard (Voluntary SME Standard) will take on an even more central role in the ESG landscape.
In the EU Commission's Omnibus initiative, the VSME standard is highlighted as the primary reporting tool for small and medium-sized enterprises. The EU Commission emphasizes in their official Q&A that although fewer companies will be directly obligated by CSRD, large companies will still demand ESG data from their suppliers to meet their own reporting obligations – here, the VSME standard is recommended as the most suitable solution.
This means that even though some companies will no longer be subject to direct regulatory requirements for ESG reporting, ESG data will still be necessary to maintain collaborations with large enterprises, participate in tenders, and secure financing.
Why is the VSME standard an advantage?
The VSME standard is developed to make ESG reporting accessible for small and medium-sized enterprises without the extensive requirements that come with CSRD. The standard ensures that companies can provide relevant ESG data to their customers and partners without going through a burdensome compliance process.
The main 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 ESG key figures that are most important – 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 necessary ESG key figures that are demanded by customers and banks.
Comparability: Standardized data ensures transparency, a common language for ESG, and makes it easier to document ESG performances to partners.
North ESG has integrated the VSME standard
At North ESG, we have already implemented the VSME standard in our platform, allowing our customers to 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 recognize and demand. This means that our users not only meet potential future reporting requirements – they also gain a competitive advantage when it comes to winning new customers, participating in tenders, or securing financing.
With our AI-supported ESG accounting program, we are already automating 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 provides more time to run a sustainable business.
We enable this by combining:
AI-based ESG calculator: Our solution can automatically collect receipts and invoices from accounting software like e-conomic and transform them into ESG key figures, significantly reducing manual processes.
Integrations to 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 framework ensures that all relevant ESG factors are documented correctly without unnecessary complexity.
In this way, ESG key figures that go far beyond CO₂ calculations are collected automatically. Companies thus receive 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 click here or find inspiration on the Business Guide here. Do you have questions about how North ESG can help your company make ESG reporting simple and automated? Then contact us – we are happy to help!
/Nicolai from North ESG