The voluntary standard for non-listed micro-, small- and medium-sized enterprises (VSME ) is intended to support SMEs in implementing their sustainability reporting efficiently and practically. Although the approach of double materiality in the VSME standard not is no longer mandatory, but it is still strongly recommended – and for good reason.
In this article, we show why double materiality continues to play a central role in the VSME context, what added value it offers and how companies can specifically benefit from a structured double materiality analysis (DMA).
The development of the double materiality analysis in the VSME
From obligation to recommendation
The Double Materiality Assesment was a mandatory component in the early drafts of the VSME. This requirement was based on the logic of the EU taxonomy and the CSRD (Corporate Sustainability Reporting Directive), in which both the company’s impact on the environment and society (“inside-out”) and the impact of sustainability issues on the company (“outside-in”) must be taken into account.
However, this obligation has been relaxed in the final version of the VSME:
The performance of a DMA is no longer mandatory, but is now presented as a recommended but optional method.
What this means for companies
- There is no legal obligation to carry out a DMA as part of the VSME.
- Nevertheless, the standard explicitly recommends it as good practice in order to increase the relevance and informative value of reporting.
- This gives companies more creative freedom, but also more responsibility to identify and prioritize relevant topics independently.
Although this development makes implementation easier, it also harbors risks: without a structured materiality analysis, there is a risk of overlooking important topics or failing to meet stakeholder expectations.
Why the DMA continues to play a central role in the VSME
Even if the Double Materiality Assesment (DMA) is no longer mandatory in the final VSME, it remains a crucial tool for credible and strategically oriented sustainability reporting. Companies that do without a DMA are wasting valuable potential – not only in terms of transparency, but also in terms of efficiency and risk management.
Here are the most important reasons why the DMA is still worthwhile:
1. prioritization of the relevant topics
The DMA helps companies to identify the truly material sustainability aspects – i.e. those that are important for stakeholders and at the same time have economic relevance for the company. This ensures focus and clarity in reporting.
2. strengthening stakeholder communication
With a well-founded DMA, companies can show that they are systematically addressing sustainability. This creates trust – among customers, employees, business partners and the public.
3. strategic linking of risks and opportunities
The dual perspective (“inside-out” and “outside-in”) makes it possible to view sustainability issues as part of corporate risk management – and not just as a reporting obligation. In this way, sustainability becomes an integral part of the business strategy.
4. avoidance of blind spots
Without a structured materiality analysis, there is a risk that relevant issues will be overlooked or underestimated. The DMA helps to sharpen the focus – also for new or previously neglected sustainability aspects.
In short, the DMA is more than just a reporting tool – it is a strategic compass that provides companies with orientation in an increasingly complex sustainability environment.
Helpful tools for your materiality analysis
The link between VSME and DMA: more structure, more relevance
Even though the Double Materiality Assesment (DMA) is no longer mandatory in the final VSME standard, it remains closely linked to its structure and requirements. Those who make targeted use of the DMA can not only report more efficiently, but also significantly increase the quality and informative value of the sustainability report.
DMA as a guide through the VSME
The VSME contains numerous disclosures on environmental, social and governance issues. However, not all disclosures are equally relevant for every company. The DMA helps companies to select the topics that are really important for their business model, their industry and their stakeholders.
Efficient reporting through clear mapping
Through systematic analysis and prioritization, material topics can be mapped directly to the requirements of the VSME. This means
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Less effort for data collection
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Clearer structure in the report
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Greater informative value for readers
From analysis to implementation
The DMA is therefore not only an analysis tool, but also a practical management instrument for reporting. It creates the basis for embedding sustainability in corporate communication in a targeted, consistent and strategic manner – in line with VSME’s objectives.
Conclusion: Why the DMA is still worthwhile in the VSME context
Even though Double Materiality Assesment is no longer a formal requirement in the final VSME standard, it remains a practically indispensable tool for many companies. It provides clarity, strengthens the relevance of the content and facilitates the targeted application of the VSME.
Especially in an environment in which transparency and credibility are increasingly in demand, the DMA helps to turn sustainability reporting from a mandatory program into a strategic opportunity. Companies that take this step not only gain orientation, but also a real competitive advantage.
