Voluntary ESG reporting standard for SMEs
The EU has developed the VSME standard – a voluntary ESG reporting framework targeted at small and medium-sized enterprises, making it easier to deliver relevant ESG data to customers and partners.
Get a demoWhat 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 and is expected to be finalized in spring 2025. It builds on existing ESG requirements from CSRD and ESRS, but in a more manageable format tailored to 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 if they collaborate with CSRD-covered companies.
How does the reporting work?
The VSME standard is divided into two modules:
Basic module
11 key information points covering the most essential ESG data.
Extended module
Contains additional requirements for companies seeking deeper ESG reporting.
What does the basic module contain?
The Basic Module consists of 11 central information points divided into three main areas:
1. General information
B1: Basis for reporting
Describes how the report was 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 about 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 about the company's total water consumption and use in areas with water scarcity.
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 at the workplace
Accidents, work environment and safety measures.
B10: Wages, collective agreements and training
Wage conditions, union coverage and employee development.
B11: Anti-corruption and bribery
Information on any convictions or fines for corruption or bribery.
What benefits 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 KPIs that are most important.
Competitive advantage
The VSME standard ensures structured and transparent ESG reporting, which is crucial for winning new customers, participating in tenders and attracting financing.
Comparability
Standardized data ensures transparency, a common language for ESG and makes it easier to document ESG performance to partners.
We meet the requirements of the VSME standard
North ESG is designed to meet all requirements in the VSME standard for SMEs. Our platform ensures that your company can report in accordance with the EU's voluntary ESG reporting framework.
By automating over 50% of the standard's KPIs, we help your company deliver accurate and credible ESG data to your stakeholders.
When does the standard come into force, and how should we prepare?
The final version is expected to be launched in spring 2025, giving 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.