Everyone senses that ESG is important. Customers ask for it, financiers weigh it in, employees want to know what their employer stands for. But despite that urgency, ESG remains a confusing and frustrating domain for many SMEs.
Why? Because there is no uniformity. Ratings, questionnaires, standards - it has become a jumble of expectations, formats and systems. Not only entrepreneurs get lost, advisors also can't see the forest for the trees. What starts as a good intention to do business transparently and sustainably soon turns into a time-consuming and costly exercise full of conflicting expectations.
Those who want to report sustainably have to deal with a mosaic of frameworks. Think GRI (Global Reporting Initiative), the SDGs (Sustainable Development Goals), ISO 26000 for social responsibility. Each with its own definitions, terminology and scopes. What counts as "social value" to one person is ignored or interpreted differently by another.
On top of that come the ESG ratings from Ecovadis, Sustainalytics, TIM and other platforms. Each with their own scoring methods, perspectives and rating criteria. And as if that were not enough, many clients also use their own questionnaires and purchasing requirements. From due diligence formats to audit requests, it is rarely aligned.
As a result, companies face the impossible task of conforming to dozens of requirements and templates at once, with no clear line or framework.
The sum is clear: companies have to reinvent the wheel every time. Each application requires a different approach, different data, a different story. This leads to:
The result? Good intentions are often overshadowed by misunderstanding, inefficiency and ESG fatigue. For many SMEs, this makes ESG feel like a bureaucratic obstacle course rather than an opportunity to professionalize.
This is why the VSME (Voluntary Sustainability Reporting Standard for SMEs) was developed. A new, European standard specifically for SMEs. Aimed at voluntary reporting, but with connection to future obligations such as the CSRD.
The VSME was set up under the direction of EFRAG (European Financial Reporting Advisory Group) and is part of the broader European sustainability agenda. The goal: to ensure that SMEs can also report on ESG without sacrificing proportionality or workability.
It is not a new "tool" on top of what is already there, but a streamlined framework that creates order out of the muddle. And that is exactly what was missing.
VSME's strength lies in three elements:
By emphasizing proportionality, the standard aligns with what SMEs can realistically deliver. You don't have to set up an ESG department, but you do get a framework that helps you report in a structured and credible way.
The introduction of VSME does not mean that you have to report today. But it does mean it is the right time to:
Get to know the standard: familiarize yourself with its principles and design, for example through a workshop or quick scan.
Decide how to use ESG: as an external report, as an internal steering tool, or as preparation for future commitments.
Take small steps: start with what you already know and can measure. Build towards more complete reports, without having to do everything perfectly at once.
Organizations that start now with the VSME approach are laying a foundation for future-proofing. They become more recognizable, transparent and attractive to their environment.
For the first time, there is one ESG language that does justice to the reality of SMEs. No proliferation, but structure. No overload, but footing. The VSME standard provides what many companies have needed for years: clarity.
Those who start now avoid lagging behind. And builds an ESG story that rings true, works and grows with the demands of tomorrow. Not because they have to, but because it pays off.