AI prompts for the VS report (formerly VSME): automated sustainability reporting

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 face the task of providing sustainability-related data in a structured, standard-compliant way. The VSME standard (now VS) offers a simplified reporting method for companies outside the CSRD scope and significantly reduces the requirements compared to the full ESRS. AI prompts can make preparing the VSME report much faster and more consistent.

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 way to automate the process. With targeted AI prompts, you can:

This article shows how to optimize your VSME report with AI prompts and which best practices to follow.

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), published by EFRAG in December 2024, is a simplified method for sustainability reporting. It was developed to avoid the high costs of the European Sustainability Reporting Standards (ESRS), which comprised over 1,000 data points in their original version. Since 24 September 2026, it has been in force as the VS (Delegated Regulation (EU) 2026/1560).

Core features of the VSME standard:

Who is the VS (formerly VSME) suitable for?

The VS is voluntary. It is particularly suitable for:

The Omnibus package and its impact

The Omnibus Directive (Directive (EU) 2026/470) entered into force on 18 March 2026. It significantly narrows the scope of mandatory CSRD reporting: from financial year 2027, only companies with more than 1,000 employees AND more than €450m net turnover are required to report. This means many companies that expected a CSRD obligation no longer fall in scope.

Structure of the VSME report

The report consists of two main modules:

1. Basic module (mandatory information)

• Company information (legal form, turnover, ESG certificates)
• Sustainability practices and guidelines
• Energy consumption and greenhouse gas emissions
• Environmental pollution and biodiversity
• Resource utilization and circular economy
• Workforce structure and working conditions
• Convictions and fines for corruption and bribery

2. Comprehensive module (voluntary information)

• Sustainability strategy and business model
• Future initiatives for ESG transformation
• GHG reduction targets and climate risks
• Human rights policies and incidents
• Turnover in critical sectors
• Gender distribution in supervisory bodies

AI prompts for the VSME report: the best prompts by module

The following prompts help automate the reporting process. Feed the AI model with company context first so that results are as specific as possible. Useful context to provide:

• Name of the company
• Link to the website or company presentation
• Industry and sector
• Main products and services
• Locations
• A note that the prompts relate to a sustainability report under the VS (formerly VSME)

General information on the report

• "Prepare an introduction to a VS (formerly VSME) sustainability report for the company [company name] for the reporting year [year]. 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: [Basic module only] / [Basic and comprehensive module], (b) Disclosure of sensitive information: We make [no] use of the right not to disclose sensitive information, (c) Basis of the report: [consolidated] / [individual], (d) List of subsidiaries (if applicable): See [link to website with subsidiaries], (e) Further information: [insert if relevant]"

B2 -- Sustainability practices and guidelines

• "Based on the available documents or the results of the double materiality assessment, create 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 -- Convictions and fines for corruption and bribery

• "Provide an overview of any convictions and fines for violations of anti-corruption and anti-bribery laws based on the following documents."
• "Draw up an anti-corruption and anti-bribery policy or a code of conduct to rule out corruption and bribery in the company."

Comprehensive module (additional information)

C1 -- Strategy and business model

• "We do not have a formulated strategy. Please formulate the strategy for our company based on the information on the website [link to website] 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], [Information on future initiatives/targets], [Responsibility]. Divide the topics into relevant sustainability topics (climate change, circular economy, etc.) and present them as rows."

C3 -- GHG reduction targets and 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: [enter address]. Consider 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 and C7 -- Human rights and 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 the company's sales. Please group and total the sales from the year [XXXX] 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 AI prompts in the VSME report

Conclusion

AI prompts make it much faster and more consistent to create a VSME-compliant sustainability report. They help automate standard processes, keep data consistent and make reporting more efficient. A careful review by ESG experts remains essential to meet regulatory requirements.

Companies that introduce AI-supported reporting early can secure competitive advantages and strengthen trust among investors and stakeholders -- regardless of whether a CSRD obligation applies to them.

Frequently asked questions about AI prompts for the VSME report