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VSME Standard
- The key to SME ESG reporting
With sustainability becoming a competitive parameter, the pressure on small and medium-sized enterprises (SMEs) to document their climate and social responsibility is increasing. Therefore, the Voluntary Sustainability Reporting Standard for SMEs (VSME) is a crucial lever for companies looking to secure their place in supply chains and access green finance. At Verarca, we automate ESG and carbon reporting and help you comply with VSME reporting easily and quickly, so you can be both responsible and efficient.
What is VSME?
VSME is a voluntary sustainability standard aimed at unlisted micro, small and medium-sized enterprises. It was developed by EFRAG (European Financial Reporting Advisory Group) and published in December 2024. The VSME EFRAG standard was created to provide SMEs with a low-barrier approach to ESG reporting, and it is expected to be officially recommended by the European Commission in mid-2025.
Unlike the extensive CSRD regulation, the VSME report is tailored for companies that fall outside the scope of CSRD. This is why the VSME standard is often referred to as a “voluntary tool with mandatory impact”, as large customers and banks are increasingly requesting VSME ESG data from their business partners.
How the VSME standard works
EFRAG's VSME standard model is made up of two modules:
- Basic module: About 50 data points on environmental, social and good governance issues. Ideal for companies new to the world of ESG.
- Extended module: adds about 100 additional data points and includes Scope 3 emissions, climate targets, human rights and risk hedging.
VSME vs CSRD and ESRS: What is the difference?
It is important to understand the difference between VSME, CSRD and ESRS:
CSRD
CSRD (Corporate Sustainability Reporting Directive) imposes statutory ESG requirements on large companies and listed SMEs.
ESRS
ESRS (European Sustainability Reporting Standards) is the detailed standard with which CSRD must comply - more than 1,000 data points!
VSME
In contrast, the VSME ESRS model is simplified and voluntary, but coherent with ESRS, meaning your VSME report can be easily upgraded as your business grows and later becomes CSRD-compliant.
Digital VSME reporting with Verarca
- Automatic analysis of invoices and accounting systems
- Calculate scope 1, 2 and 3 emissions
- Completed reports in line with VSME ESG requirements
- Shareable dashboards for bank, accountant or customer
Why choose VSME reporting?
There are many good reasons to actively work with the VSME standard:
Access to finance
Banks and investors demand standardised ESG data - VSME reporting is the easiest way to achieve this.Securing supply chains
The report visualises resource consumption, risks and improvement opportunities in operations and working environment.Effective internal management
You get an overview with user-friendly dashboards that allow you to easily identify areas with potential for CO2 reduction.Future-proofing
VSME is compatible with ESRS and can be easily upgraded as your business grows.
Who should use the VSME report?
- SMEs without CSRD obligations that want to remain competitive
- Companies seeking access to green financing
- Suppliers of larger companies complying with CSRD
- Organisations working strategically with ESG and wanting to document this
Contact Verarca
today
The world is moving towards greater transparency and accountability. With VSME reporting, you have a concrete EU-recognised framework to start working on sustainability on your own terms. Verarca offers you the complete set-up for VSME standard efrag reporting, so you can focus on your business while documenting your environmental footprint and social responsibility – quickly, accurately and credibly.
