Questions About the VSME

VSME stands for “Voluntary reporting standard for Small and Medium-sized Enterprises.” In other words, the voluntary sustainability reporting standard for SMEs.

The VSME is a reporting standard that helps SME companies make their sustainability efforts transparent.

Yes, the VSME is specifically designed for smaller companies, whereas the CSRD is aimed at large enterprises. The VSME is voluntary and simpler in structure, while the CSRD is mandatory and requires comprehensive reporting.

Yes, you can handle the VSME yourself. All the information you need is available on the EFRAG website. However, it can be helpful to seek support if you want to quickly and efficiently prepare a complete report.

Compared to the CSRD, the VSME is relatively straightforward. The standard is tailored to the capabilities of SMEs, with clear guidelines and modules that can be applied as seen fit to the organization.

The cost of a VSME report depends on the size of your company and the level of support you need. This can range from a do-it-yourself approach with minimal costs to a fully guided process requiring more investment. Factors to consider include the number of products/services you provide, the number of locations you have, the amount of transportation, and any mandatory legislation or certifications.

No, the VSME is voluntary, but an annual update is recommended. This keeps your data up-to-date and is useful for large parties that request this information annually for the CSRD.

It is not mandatory to use software, but it can significantly simplify the process. With software, you can easily track data and quickly generate reports that comply with the standard.

No, an audit by an accountant is not required by the VSME. Since you provide all data sources, calculations and justifications in the report, the requesting party can verify them independently. Of course, your accountant may perform a review of the basic data for an extra level of assurance.

No, the most recent available version of the VSME is a so-called Exposure Draft; in other words, a draft version. The final version must be submitted to the European Commission by December 20 at the latest, after which conclusions will follow in January. Hopefully, there will be more clarity soon!

The new version of the VSME promises to simplify the process even further. Read more about what we might expect in the new version in our blog: read it here.