VSME
VSME
Voluntary ESG reporting standard for SMEs
Voluntary ESG reporting standard for SMEs
The VSME standard: A simple ESG reporting for SMEs
The EU has developed the VSME standard – a voluntary ESG reporting framework aimed at small and medium-sized enterprises, making it easier to provide relevant ESG data to customers and partners. Here you get an overview of the standard's content, functionality, and the benefits it can bring to your business.
The EU has developed the VSME standard – a voluntary ESG reporting framework aimed at small and medium-sized enterprises, making it easier to provide relevant ESG data to customers and partners. Here you get an overview of the standard's content, functionality, and the benefits it can bring to your business.
What is the VSME standard?
What is the VSME standard?
The VSME standard was launched as a draft on January 21, 2024, and was updated with a new version in December 2024, with completion expected in spring 2025. It builds on existing ESG requirements from CSRD and ESRS, but in a more accessible format tailored for SMEs. The standard is voluntary, but many SMEs choose to implement it to improve their sustainability reporting, strengthen relationships with customers and investors, and create standardized reporting when collaborating with companies covered by CSRD.
The VSME standard was launched as a draft on January 21, 2024, and was updated with a new version in December 2024, with completion expected in spring 2025. It builds on existing ESG requirements from CSRD and ESRS, but in a more accessible format tailored for SMEs. The standard is voluntary, but many SMEs choose to implement it to improve their sustainability reporting, strengthen relationships with customers and investors, and create standardized reporting when collaborating with companies covered by CSRD.
How does the reporting work?
How does the reporting work?
The VSME standard is divided into two modules:
Basic Module: 11 key disclosure points covering the most essential ESG data.
Extended Module: Contains additional requirements for companies that want deeper ESG reporting.
What does the basic module contain?
The Basic Module consists of 11 central disclosure points divided into three main areas:
1. General information:
B1: Basis for reporting – Describes how the report has been prepared, including the choice of basic or extended module.
B2: Sustainability practices, policies, and future initiatives – Overview of existing sustainability strategies and goals.
2. Environmental data:
B3: Energy and greenhouse gas emissions – Data on energy consumption and direct (Scope 1) and indirect (Scope 2) CO₂ emissions.
B4: Pollution of air, water, and soil – Information on any pollution sources from the company's activities.
B5: Biodiversity – Indication of the company's impact on biodiversity, e.g., owned or leased areas in sensitive natural areas.
B6: Water consumption – Information on the company's total water consumption and usage in water-scarce areas.
B7: Resource consumption and circular economy – Information on material consumption, waste management, and recycling.
3. Social and governance data:
B8: Workforce composition – Number of employees, working conditions, and demographic data.
B9: Health and safety in the workplace – Accidents, working environment, and safety measures.
B10: Wages, collective agreements, and education – Wage conditions, union coverage, and employee development.
B11: Anti-corruption and bribery – Information about any convictions or fines for corruption or bribery.
The VSME standard is divided into two modules:
Basic Module: 11 key disclosure points covering the most essential ESG data.
Extended Module: Contains additional requirements for companies that want deeper ESG reporting.
What does the basic module contain?
The Basic Module consists of 11 central disclosure points divided into three main areas:
1. General information:
B1: Basis for reporting – Describes how the report has been prepared, including the choice of basic or extended module.
B2: Sustainability practices, policies, and future initiatives – Overview of existing sustainability strategies and goals.
2. Environmental data:
B3: Energy and greenhouse gas emissions – Data on energy consumption and direct (Scope 1) and indirect (Scope 2) CO₂ emissions.
B4: Pollution of air, water, and soil – Information on any pollution sources from the company's activities.
B5: Biodiversity – Indication of the company's impact on biodiversity, e.g., owned or leased areas in sensitive natural areas.
B6: Water consumption – Information on the company's total water consumption and usage in water-scarce areas.
B7: Resource consumption and circular economy – Information on material consumption, waste management, and recycling.
3. Social and governance data:
B8: Workforce composition – Number of employees, working conditions, and demographic data.
B9: Health and safety in the workplace – Accidents, working environment, and safety measures.
B10: Wages, collective agreements, and education – Wage conditions, union coverage, and employee development.
B11: Anti-corruption and bribery – Information about any convictions or fines for corruption or bribery.
What advantages does the VSME standard provide?
What advantages does the VSME standard provide?
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 metrics that are most important – thereby avoiding unnecessary administration and complexity.
Competitive advantage: The VSME standard ensures a structured and transparent ESG reporting process, which is crucial for winning new customers, participating in tenders, and attracting financing. The standard covers the most necessary ESG metrics that are demanded by customers and banks.
Comparability: Standardized data ensures transparency, a common language for ESG, and makes it easier to document ESG performance to partners.
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 metrics that are most important – thereby avoiding unnecessary administration and complexity.
Competitive advantage: The VSME standard ensures a structured and transparent ESG reporting process, which is crucial for winning new customers, participating in tenders, and attracting financing. The standard covers the most necessary ESG metrics that are demanded by customers and banks.
Comparability: Standardized data ensures transparency, a common language for ESG, and makes it easier to document ESG performance to partners.
When does the standard take effect, and how should we prepare?
When does the standard take effect, and how should we prepare?
The final version is expected to be launched in the spring of 2025, allowing companies time to prepare.
Although the standard is voluntary, it may become a market standard in certain industries. SMEs should therefore:
Map their current ESG data and processes.
Consider digital solutions that simplify reporting and ensure compliance.
Establish systems for continuous data collection.
The final version is expected to be launched in spring 2025, giving businesses time to prepare.
Although the standard is voluntary, it could become a market standard in certain industries. SMEs should therefore:
Map their current ESG data and processes.
Consider digital solutions that simplify reporting and ensure compliance.
Establish systems for ongoing data collection.
The final version is expected to be launched in the spring of 2025, giving businesses time to prepare.
Although the standard is voluntary, it may become an industry standard in certain sectors. SMEs should therefore:
Map their current ESG data and processes.
Consider digital solutions that simplify reporting and ensure compliance.
Establish systems for ongoing data collection.
How does North ESG help with the VSME standard?
How does North ESG help with the VSME standard?
North ESG has integrated the VSME standard into our platform to ensure easy and efficient ESG reporting for SMEs. With our AI-supported ESG accounting program, we automate over 50% of the key figures in the standard, minimizing manual effort and ensuring accurate data. The goal is to make ESG reporting simple, relevant, and value-creating through automation – for businesses of all sizes.
North ESG has integrated the VSME standard into our platform to ensure easy and efficient ESG reporting for SMEs. With our AI-supported ESG accounting program, we automate over 50% of the key figures in the standard, minimizing manual effort and ensuring accurate data. The goal is to make ESG reporting simple, relevant, and value-creating through automation – for businesses of all sizes.
Automated ESG accounting.
Simple and efficient.
Bryghuspladsen 8, 3. 1473 København I +45 2757 7949
© 2025 North ESG ApS — CVR: 45015653
© 2025 North ESG ApS — CVR: 45015653
Built and designed in Denmark and Sweden
Automated ESG accounting.
Simple and efficient.
Bryghuspladsen 8, 3. 1473 København I +45 2757 7949
© 2025 North ESG ApS — CVR: 45015653
© 2025 North ESG ApS — CVR: 45015653
Built and designed in Denmark and Sweden
Automated ESG accounting.
Simple and efficient.
Bryghuspladsen 8, 3. 1473 København I +45 2757 7949
© 2025 North ESG ApS — CVR: 45015653
© 2025 North ESG ApS — CVR: 45015653
Built and designed in Denmark and Sweden
Automated ESG accounting.
Simple and efficient.
Bryghuspladsen 8, 3. 1473 København I +45 2757 7949
© 2025 North ESG ApS — CVR: 45015653
© 2025 North ESG ApS — CVR: 45015653
Built and designed in Denmark and Sweden
Automated ESG accounting.
Simple and efficient.
Bryghuspladsen 8, 3. 1473 København I +45 2757 7949
© 2025 North ESG ApS — CVR: 45015653
© 2025 North ESG ApS — CVR: 45015653
Built and designed in Denmark and Sweden