VSME the European Sustainability Reporting Standard
With the VSME you have a sustainability plan and an overview of all your impact such as emissions, circularity, biodiversity, water use and impact in the value chain.
VSME is part of the European Sustainability Reporting Standard (ESRS) and lets you easily share information with CSRD clients.
What is VSME?
The VSME is the European standard for sustainability reporting for SMEs and micro-enterprises.
The VSME is derived from “VSME-ESRS” which stands for ‘Voluntary Small Medium Enterprise – European Sustainability Reporting Standard’.
This standard serves the purpose of protecting smaller companies in Europe against a variety of questions and forms from large companies. Larger companies and institutions are required by law to report on their impact in the value chain, and this also includes SMEs and micro-enterprises.
How do I benefit from the VSME?
A sustainability report is not mandatory, but these are the reasons why you may choose the VSME:
Decision making and risk management
The vsme helps in decision making for the short, mid and long term. With the double materiality analysis you will be able to find new risks and opportunities.
Compliance
With the VSME you help clients to comply to EU law and regulations.
Tenders and new opportunities
With a VSME you have a greater chance of winning tenders and you can discover and take advantage of new business opportunities
One report
The VSME replaces all questionnaires from your customers and business partners. “One report to rule them all”
Who will use the VSME?
Companies with less than: 50 M turnover, 25 M balance sheet total, 250 Employees.
So potentially more then 24 million enterprises in the EU alone.
What is the purpose of the VSME?
With a VSME report you have insight into the gap between your sustainability performance and a climate-neutral and circular company.
Chances are that your customers and business partners need your VSME to comply with law and regulations such as the CSRD. After all, your customers are also partly responsible for your impact. This can also lead to better cooperation and new innovation.
The goal is to have a climate-neutral and circular economy in Europe by 2050. Due to raw material scarcity and risks from climate change, Europe wants to protect its citizens and economy. Climate change brings instability to the world and Europe wants to be less dependent on external energy and raw materials.
Good reasons to map your impact, risks and opportunities.
What is included in the VSME sustainability report?
Energy and greenhouse gas emissions
Pollution of air, water and soil
Biodiversity
Water
Recourse use, circular economy and waste management
Workforce general characteristics, health and safety, remuneration, collective bargaining and training
Convictions and fines for corruption and bribery
Revenues from certain sectors
Gender diversity ratio in governance body
GHG reduction and climate transition
Physical risks from climate change
Human rights impacts and complaints
Energy production
Vehicle fleet
Hazardous waste and/or radioactive waste
Alignment with EU taxonomy
What does it cost?
It depends on the complexity of your business. The more products, real estate, customers and diversity of stakeholders; the more time it will take.
Roughly answered: the smaller the company, the cheaper it will be.
An estimate for your first VSME is €2,000 to €10,000.
In the second year, it is estimated that time investments will decrease by 30% to 50%.
This is based on initial findings from practice within a field test organized by EFRAG (European Financial Reporting Advisory Group).
Looking for a VSME TOOL?
collect – manage – report
Where is your company on the road to a climate-neutral and circular working method?
