More and more often we hear entrepreneurs ask, "What should I do with the VSME, and does it actually apply to my SME?" A completely justified question. After all, the past year has been characterized by much uncertainty surrounding European legislation for sustainable business. This has caused many entrepreneurs to adopt a wait-and-see attitude.
In short, the VSME is the voluntary ESG standard for SMEs (2024). The abbreviation VSME stands for Voluntary Sustainability Reporting for Small and Medium-sized Enterprises. It is a lightweight EU standard, so not a thick report, developed specifically for SMEs up to 250 FTE.
With the VSME you record in a simple and standardized way what you are doing in the field of ESG :
Without heavy bureaucracy or complex reporting requirements. The standard is voluntary, practical and fits the reality of SMEs: limited time, limited capacity, but increasing demands from customers, financiers and supply chain partners. The VSME offers entrepreneurs structure to deal with these questions proportionally
The European Commission developed the VSME standard with a clear goal for SMEs.
In fact, in practice, SMEs ran into two major problems:
1. Over-demanding SMEs
Large organizations covered by the CSRD must report on their supply chain. That demand for information is often passed on to their suppliers without regard to scale, capacity or maturity.
2. proliferation of ESG questions
Different customers, banks and partners all ask slightly different sustainability questions. Often in different formats and definitions. For SMEs, this leads to frustration, inefficiency and ad hoc answers.
VSME was developed to create order in this situation: one recognizable European standard with which SMEs can record and share their sustainability information in a consistent manner.
Should every SME use this now?
No, and it is precisely this nuance that is essential. Whether the VSME is relevant to you now depends very much on your company's situation. A few common scenarios:
You are a supplier to large companies
Chances are that ESG questions are already upon you now, or will be soon. With the VSME, you gain control and protection: from now on, you respond proactively and in a structured manner according to a uniform standard, instead of providing ad hoc information each time. Large companies are not allowed to ask for more and that gives peace of mind.
You have growth ambitions
If you want to grow as a company, deploy sustainability as a business strategy. The VSME helps you to implement sustainability in a structured way from the start. Without being stuck with heavy reporting obligations, but with a clear basis that is ready for the next step towards your ambitions.
You have financing issues
Banks and investors are required to identify ESG risks and opportunities. Financing info(conditions) are linked to ESG performance of your enterprise. It says something about the future sustainability and resilience of your company. A VSME report provides an overview and shows that you, as an entrepreneur, organize your business seriously and with a view to the future.
Many SMEs face the same obstacles: fragmented sustainability data in separate Excel files, different customer questions that do not have a clear answer, uncertainty about who within the organization is responsible for ESG reporting and fear of a complicated, time-consuming process. Without a clear structure, "sustainable business" often remains good intentions instead of concrete results.
With VSME, you break through this. This voluntary, hands-on standard helps you in one standardized approach:
Overview and control
Bring all your environmental, social and governance data together in one simple dashboard.
Credible evidence
Substantiate your sustainability claims in a way that resonates with customers, financiers and supply chain partners.
Commercial advantage
Strengthen your position in tenders and partner selections thanks to a substantiated ESG profile.
Efficiency and time savings
Deploy proven templates and workflows, and report 3-5× faster without manual copying and pasting.
Future-proof business
Prepare your organization voluntarily for upcoming EU obligations (such as CSRD) and do not fall behind the times.
Clear internal roles
Easily assign ESG responsibilities with a clear, step-by-step approach.
This is how you turn "corporate sustainability" into an effective strategic tool for growth, risk management and reputation building.
The VSME standard has two variants:
1. Basic Module
This is intended for micro-enterprises (< 900k turnover, < 10 people), the very smallest segment. The focus is on very limited basic information.
2. Comprehensive Module
The Comprehensive Module is relevant to the vast majority of SMEs. It provides sufficient depth to give serious substance to ESG, without unnecessary complexity. Among other things, the Comprehensive Module requires:
General company data (sector, turnover, FTE, locations)
A brief description of your business model and strategy
Insight into policies, measures and specific data for relevant ESG topics
(You report only what is relevant to your company)
No thick reports, but clear, substantiated information.
What is the difference between VSME and other sustainability frameworks?
There are many sustainability frameworks and this often causes confusion. In a nutshell:
VSME vs. CSRD
CSRD is mandatory for large companies whose group has 1,000 employees and annual sales of €450 million. VSME is voluntary and specifically designed for SMEs with proportionality in mind.
VSME vs. certifications (such as B Corp or ISO)
VSME is neither a seal of approval nor an audit. It is a reporting standard that provides insight and structure to provide the market with the most relevant ESG data.
Here we give you a roadmap to get started pragmatically to gain overview and focus:
1. Map out which ESG topics are relevant to your company
2. Collect what you already know and record.
3. Make an action list of missing data
4. Delegate these actions to the organization
5. Use tooling to record, report and communicate everything in a structured way
Tip: With a little guidance, this process goes considerably faster and calmer. With the right tooling, process support and templates, you don't have to reinvent the wheel yourself and can focus on your core business.
Want quick insight ( 5 min) into your company's VSME Journey? Start my free VSME Check on our website.
Begin with confidence: The VSME Check
At Planet Yes, we believe this only works if it remains practical, clear and applicable, tailored to where you really stand as a company. Want to know where you stand?
Afterwards, you'll see immediately:
Your VSME-journey score (max. 100)
A brief explanation of your outcome
Your smartest next step toward a usable VSME report
It's free and we don't ask you to leave your details.