Sustainability reporting has been a key challenge for companies in the EU since the introduction of the Corporate Sustainability Reporting Directive (CSRD). Small and medium-sized enterprises (SMEs) in particular are faced with the task of providing sustainability-related data in a structured and standard-compliant manner. This is where the VSME standard which serves as a simplified reporting method for non-listed SMEs and significantly reduces the requirements for sustainability reporting. The use of AI prompts can facilitate the preparation of the VSME report.
How AI prompts make the VSME report easier
Creating a VSME-compliant sustainability report requires a lot of data, tables and analyses. AI-supported writing tools such as ChatGPT offer an efficient solution to automate the process. Through the targeted use of AI prompts, companies can:
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Save time and resources by generating pre-structured content
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Prepare data consistently and in compliance with standards
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Automate standardized tables and calculations
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Improve the quality and comprehensibility of the report
This article shows how the VSME report can be optimized with the help of AI prompts and which best practices should be observed.
Basics of the VSME report according to CSRD
What is the VSME standard?
The VSME standard (Voluntary Standard for non-listed Small- and Medium-sized Undertakings) is a simplified method for sustainability reporting. It was developed in order to avoid the high costs of the European Sustainability Reporting Standards (ESRS) which require over 1,000 data points.
Core features of the VSME standard:
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Modular structure: The report consists of a basic module (mandatory information) and a comprehensive module (voluntary information).
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Only 20 reporting topics: Significantly reduced reporting requirements compared to ESRS.
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No double materiality analysis: Companies do not have to prove which topics are financially or sustainably material.
Who must prepare a VSME report?
The VSME standard is aimed specifically at:
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Small and medium-sized enterprises (SMEs) that are not subject to the CSRD obligation.
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Companies that want to voluntarily document their sustainability performance.
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Companies wishing to prepare for possible future reporting obligations.
The omnibus initiative and its impact
As part of the Omnibus Initiative proposed a comprehensive relaxation of CSRD requirements in order to ease the burden on SMEs. Companies therefore face an unclear future in which they must nevertheless prepare for growing investor and stakeholder expectations. The VSME standard is therefore gaining in importance as it offers a voluntary and practicable alternative to extensive CSRD reporting.
The EU Commission's omnibus amendments are proposals. These proposals must be consulted on and first adopted by the EU Parliament and the European Council and converted into a directive. The ESRS must then be adapted by means of a delegated act and transposed into the national law of the EU member states.
Structure of the VSME report
The report consists of two main modules:
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Basic module (mandatory information)
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Company information (legal form, turnover, ESG certificates)
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Sustainability practices and guidelines
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Energy consumption and greenhouse gas emissions
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Environmental pollution and biodiversity
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Resource utilization and circular economy
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Workforce structure and working conditions
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Corruption and money laundering incidents
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Comprehensive module (voluntary information)
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Sustainability strategy and business model
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Future initiatives for ESG transformation
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GHG reduction targets and climate risks
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Human rights policies and incidents
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Turnover in critical sectors
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Gender distribution in supervisory bodies
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KI-Prompts VSME: The best for preparing the sustainability report
The following prompts can help to automate the reporting process. We recommend feeding the AI model with some data about the company at the beginning so that the results are as specific as possible. The following information is helpful for artificial intelligence:
- Name of the company
- Link to the website or company presentation
- Industry / Sector
- Main products / services
- Locations
- Note that the following prompts are about the preparation of a VSME Sustainability Report (CSRD).
General information on the report
- “Create an introduction for a sustainability report in accordance with CSRD (VSME) for the company [Unternehmensname] for the reporting year [Jahr]. Briefly describe the purpose of the report and the target groups (investors, customers, employees, public).”
- “Generate a table with general company information for the VSME report, including: legal form, industry classification (NACE code), total assets, turnover, number of employees (FTE or headcount), locations with coordinates, ESG certificates/labels.”
Basic module (mandatory information)
B1 – Basis for the creation
- “Create a text module to provide the basic information for the VSME sustainability report. The template should include:
(a) Reporting option selected: [Nur Basis-Modul] / [Basis- und umfassendes Modul],
(b) Disclosure of sensitive information: We make [no] use of the right not to disclose sensitive information,
(c) Basis of the report: [konsolidiert] / [individuell],
(d) List of subsidiaries (if applicable): See [Link zur Webseite mit Tochtergesellschaften],
(e) Further information: [Einfügen sofern relevant]”
B2 – Sustainability practices and guidelines
- “Based on the available documents or the results of the double materiality analysis, prepare a table of the company’s sustainability practices, including existing policies, initiatives and targets for the following ESRS topics: Climate change, pollution, water and marine resources, biodiversity, circular economy, company workforce, value chain workforce, affected communities, consumers, governance.”
B3 – Energy and greenhouse gas emissions
- “What is the most efficient way to obtain data on my company’s energy consumption in MWh, broken down by renewable and non-renewable sources (electricity and fuels)? Which internal stakeholder should I most likely contact in this regard?”
- “Which specific methodologies, emission factors and data sources are best suited to accurately populate an existing table of gross greenhouse gas emissions (tCO₂e) according to the GHG Protocol Corporate Standard? How can the accuracy of estimates for Scope 1 and Scope 2 be optimized, especially with regard to location-based emissions? If Scope 3 is included, what are the best practices for delineating and calculating these indirect emissions?”
B4 – Pollution
- “Which pollutants are typically emitted into the environment in our industry (air, water, soil)? What measurement or estimation methods are used to determine emissions?”
- “Which methods (measurement, modeling, estimation) are best suited to quantify our operational pollutant emissions in kg for air, water and soil pollution? Which official emission factors or data sources should we use?”
B5 – Biodiversity
- “Which official maps or databases (e.g. IUCN, WWF Risk Filter, national environmental authorities) can we use to identify biodiversity-sensitive areas that are close to our company sites?”
- “Based on the following documents and screenshots, create a table to document sites in biodiversity-relevant areas, including area, protection status and land use.”
B6 – Water
- “How can the water consumption for each site be calculated automatically by recording the difference between water withdrawal and water return from production processes? Which mathematical models or algorithms can be used to increase accuracy?”
- “How can we use the WRI’s Water Risk Atlas or other GIS-based tools automatically to identify our locations with high water scarcity and update them regularly?”
- “Based on the following data, create an overview of the company’s water withdrawal in m³, including information on locations with high water scarcity.”
B7 – Resource utilization and circular economy
- “How can we calculate the proportion of recyclable or reusable materials in our products and packaging? Which data sources or standards (e.g. EU Circular Economy Action Plan, ISO 14001) should we use to make our circular economy strategy measurable?”
- “Which methods or software solutions are suitable for creating an annual material flow stream in order to make the entire use of resources transparent? How can material data from different sources (production, purchasing, supply chain) be automatically merged?”
B8 – Workforce (general characteristics)
- “What is the most efficient way to extract my company’s current HR data (full-time equivalents or number of people) by contract type, gender and country from our HR system? Which internal stakeholders (e.g. HR department, HR IT, Controlling) should I contact to obtain this data?”
- “Enclosed are data on our workforce. Create an overview of the workforce, broken down by type of employment contract (fixed-term/permanent), gender, country and fluctuation rate.”
B9 – Health and safety
- “What is the most efficient way to extract the number of recorded or reported occupational accidents and work-related fatalities from internal systems (e.g. health and safety reports, safety management systems)? Which internal stakeholders (e.g. HSE manager, HR department) should I contact?”
B10 – Remuneration, collective bargaining, training
- “Enclosed is data on our workforce. Create a table with average wages, gender pay equity, number of employees with a collective agreement and average training hours per year.”
B11 – Corruption and financial penalties
- “Provide an overview of any convictions and fines related to corruption and money laundering based on the following documents.”
- “Draw up an anti-corruption and money laundering policy or a code of conduct to rule out corruption and money laundering in the company.”
Comprehensive module (additional information)
C1 – Strategy & business model
- “We do not have a formulated strategy. Please formulate the strategy for our company based on the information on the website [Link zur Webseite] and the documents attached.”
- Which internal sources (e.g. annual reports, strategy documents, company presentations) provide the most accurate information about our business model and sustainability strategy?”
- “Extract and summarize a clear and concise description of our key product groups, relevant markets and key business relationships?”
C2 – Future initiatives for sustainability
- “Enclosed are the results of our double materiality analysis. Identify measures with the greatest leverage that also lead to cost savings. Compile a table detailing our sustainable practices, policies and future initiatives.”
- “Enclosed are our internal sustainability guidelines and initiatives. Please create a table with the following columns: [Practice/policy/future initiative incl. corresponding measures], [Informationen über Zukunftsinitiativen/Ziele], [Verantwortlichkeit]. Divide the topics into relevant sustainability topics (climate change, circular economy, etc.) and present them as rows.”
C3 – GHG reduction targets & climate transformation
- “What is the most efficient way to calculate our GHG reduction targets for Scope 1, 2 and 3? Which internal data sources should be used for this?”
- “What are good and affordable ESG software solutions for calculating our Scope 1, 2 and 3 emissions?”
C4 – Climate risks
- “How can we quantify climate-related physical risks (floods, heat, storms) to our company? Which external sources (e.g. IPCC reports) are helpful?”
- “What methodological approaches are there to analyze the financial impact of climate risks on our assets, activities and value chain?”
- “Please quantify Climate-related physical risks (floods, heat, storms) for our location: [Adresse eingeben]. Take into account the potential level of damage and the probability.”
C5 – Gender distribution at management level
- “What are effective measures to balance the gender distribution at our management level?”
- “Draw up a policy on diversity and gender equality in the company, including at management level.”
C6 & C7 – Human rights & incidents
- “Which internal sources (e.g. compliance reports, supplier audits, whistleblower systems) provide the most accurate data on confirmed human rights violations?”
- “What methods are in place to analyze the risk of human rights violations in our supply chain or among our suppliers and what measures are effective in preventing them?”
- “Draw up a policy or code of conduct for our suppliers in which you commit to respecting human rights.”
C8 – Turnover in critical sectors
- “Enclosed are all of the company’s sales. Please group and total the sales from the year [XXXX] that were made in the following sectors: a) Controversial weapons; b)Cultivation and production of tobacco, c) Fossil fuel sector (coal, oil and gas), d) Chemical production {only for manufacturers of pesticides and other agrochemical products}.
- “What types of sales are critical according to the EU reference values and how can our company ensure that all relevant data is captured for the report?”
C9 – Gender balance in governance bodies
- “We have X women and Y men on the Supervisory Board. Please calculate the ratio and write a text for the disclosure item ‘C9 Gender diversity ratio in the governance body’.
- How can I create an automated query to extract the number of female, male and diverse members in our governance bodies?”
Best practices for the use of AI prompts in the VSME report
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Quality assurance and manual review: AI-generated content should always be reviewed by experts to avoid content and regulatory errors.
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Standardized data structure and consistency: Standardized templates and tables ensure comparability across different reporting periods.
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Transparency and traceability: All data sources and calculation methods should be clearly documented.
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Observe data protection and compliance: Sensitive company data must not be entered into AI tools without protection.
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AI as a support, not a replacement: Human expertise remains essential in order to produce high-quality reports.
Frequently asked questions (FAQs)
1. is the VSME standard mandatory? No, the VSME standard is voluntary and is aimed at non-listed SMEs that want to implement sustainable reporting.
2. can AI take over the entire reporting process? AI can support the process, but human review remains necessary to ensure accuracy and compliance.
3. which software is suitable for AI-supported reporting? In addition to ChatGPT, tools such as Microsoft Copilot, Jasper AI or specialized ESG software can be used.
4 How can I ensure that my report is CSRD-compliant? A combination of AI-generated content, manual checks and a final review by ESG experts ensures compliance.
5. is there a template for the VSME report? Yes, CSR-Tools offers a template with a ready-made VSME report that only needs to be filled in with your own data. There is also a practice-oriented workshop on the topic of VSME reports.
ESRS VSME Berichtsvorlage
Vorlage eines CSRD-konformen VSME Nachhaltigkeitsberichts im Word Format die sie selbständig befüllen können. Zudem erhalten Sie eine Schritt-für-Schritt Anleitung mit Tipps.
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Conclusion
AI prompts make it much easier to create a VSME-compliant sustainability report. They help to automate standard processes, keep data consistent and make reporting more efficient. Nevertheless, a careful review by ESG experts remains essential in order to meet regulatory requirements.
Companies that introduce AI-supported reporting at an early stage despite the uncertain legal situation can secure competitive advantages and strengthen trust among investors and stakeholders.