With the Corporate Sustainability Reporting Directive (CSRD), the European Union is setting new standards for transparency and responsibility in corporate reporting. Even SMEs that were not previously required to report directly are coming under increasing pressure due to requirements along the supply chain, financing conditions and rising stakeholder expectations. A VSME tool can be helpful here.
To meet these challenges, the VSME Standard was developed – a voluntary framework designed to make it easier for small companies to present their sustainability performance in a structured and comparable manner. However, implementation is anything but trivial: a lack of time, a lack of expertise and limited resources often stand in the way of effective sustainability reporting.
This is where specialized VSME tools come in. They offer technical and methodological support in efficiently recording ESG data, evaluating it in a structured manner and reporting it in accordance with VSME requirements.
What is the VSME standard?
The VSME Standard (Voluntary Sustainability Reporting Standard for Small and Medium-Sized Enterprises) was created to provide small and medium-sized enterprises (SMEs) with a practical basis for voluntary sustainability reporting. It was developed primarily by the EFRAG (European Financial Reporting Advisory Group), which is also responsible for developing the binding ESRS (European Sustainability Reporting Standards) as part of the CSRD. The last VSME update(as of April 2025) wasin December 2024.
In contrast to the comprehensive requirements of the CSRD, which since the omnibus proposal has primarily addressed large companies with more than 1,000 employees, the VSME standard is modular, lightweight and geared towards the real resources of small companies. It focuses on the key ESG aspects (environment, social, governance) that are relevant for SMEs – for example CO₂ emissions, energy consumption, employee concerns or supply chain risks.
The standard contains a total of 190 disclosure requirementswhich are divided into a mandatory basic module (Basic Module) and a voluntary comprehensive module (Comprehensive Module). The increasing market demand for transparency and ESG data makes the VSME standard in combination with the materiality assessment a strategic instrument for many companies to secure their competitiveness and communicate their sustainability goals credibly.
You can also find more information on the “small” ESRS in the recording and presentation of our VSME webinar.
Do you even need a VSME tool?
The central question that many small and medium-sized companies ask themselves: Is a simple Word or Excel template for sustainability reporting enough – or do they really need a specialized software solution for the VSME report?
What are the advantages of a VSME tool?
A VSME tool offers a number of advantages compared to manual document templates. These include
- Guided data entry: VSME tools offer structured input screens that guide users through all relevant ESG categories in the basic and comprehensive module – so nothing is overlooked.
- Automatic plausibility checks: Input errors or missing information are detected at an early stage.
- Report generation at the touch of a button: The software can export reports in the desired format – often including visual elements and sometimes even in different languages.
- Versioning and teamwork: In cloud-based tools, several users can work on the report at the same time and different authorizations can be assigned.
- Updates according to current standards: Good tools automatically adapt to new regulatory developments, such as possible future changes by EFRAG.
- Interfaces: Some VSME tools can be connected to existing ERP, HR or energy management systems so that relevant data can be automatically transferred and evaluated.
What are the advantages of classic VSME templates (Word/Excel)?
At the same time, traditional methods still have their place – especially in small organizations or in the early stages of sustainability work:
- Inexpensive: Templates can usually be downloaded very inexpensively and there are no annual license fees. The VSME report template from CSR Tools (including instructions, help, VSME data point list, etc.) is available for as little as €699.
- Flexibility: Adaptations are made quickly, without technical know-how.
- Low entry hurdle: No registration, no implementation effort, no IT integration necessary, as Excel or Word are already used in the organization.
- Teamwork: By using cloud services, you can work collaboratively in a team on the same document – without limiting the number of users.
- Purchase: When purchasing a template, there is usually no need to go through a complex purchasing process and no coordination with IT or internal data protection is required.
Conclusion on the use of a VSME tool
A tool for implementing the VSME standard is not a must, but can offer real added value in certain contexts – especially in the case of recurring reporting or when several people are involved.
However, the size and complexity of the VSME standard should be assessed realistically: The scope is deliberately kept lean, which means that complex IT integrations or costly interface solutions are not worthwhile in many cases – especially not for small companies with low data volumes. In addition, you become dependent to a certain extent and are less flexible when using a software solution.
Nevertheless, modern tools – especially through the use of artificial intelligence (AI) – can offer advantages: They support the automated creation of qualitative information (as many as 110 data points), offer text suggestions or generate entire chapters based on the company data entered. This can save time and resources without sacrificing quality, especially when it comes to topics such as environmental strategy, social measures or governance principles. Of course, AI can also be used with a template solution through targeted AI prompts for the VSME report.
Evaluation criteria for the selection of the VSME tool
The selection of a suitable VSME tool should not be left to chance – because even if many solutions appear similar, they sometimes differ considerably in terms of functionality, user-friendliness and cost. To make an informed decision, it is worth taking a look at the CSRD software selection guide or the following key criteria:
- User-friendliness: An intuitive and clearly structured interface saves time and reduces the barrier to entry – especially if the company has little experience with ESG reporting. Look out for tools with clear user guidance, contextual help texts and visual orientation elements.
- Coverage of VSME content: Not all ESG reporting software is automatically VSME-compatible. It is important that the tool addresses the VSME-specific reporting areas – i.e. qualitative information (e.g. strategy, processes) as well as simple quantitative data, if required.
- Support for qualitative text modules: Good tools actively support you in creating qualitative content, e.g. through AI-based text suggestions or templates.
- Design & export functions: Whether PDF, Word or XBRL – the ability to design reports beautifully and output them in different formats facilitates internal use and external communication. Also pay attention to whether the export is customizable (e.g. own branding, module selection).
- Data protection & hosting: Especially in sensitive business areas, it is important that the tool is GDPR-compliant and ideally hosted in Europe.
- Pricing & license model: Many VSME tools offer staggered annual licenses or project packages. Consider whether an annual subscription is worthwhile or whether a one-off license purchase is more economical.
- Technical support & training: Competent customer support and structured onboarding and training programs can make it easier to get started – especially if the topic of sustainability is still uncharted territory internally.
The 7 best VSME tools & templates in 2025
- CSR Tools: The only VSME Word template among the top 7 is already available for 699€ with ready-made texts and tables, structured instructions, VSME data point list for data collection and other tips.
- CONSUST FramesCubeAutomated VSME and ESRS reports with a click. Very structured implementation and dashboard function.
- Code Gaia: Fully integrated VSME module for SMEs with simple report export, CO2 recording and guided data collection.
- Daato/EQS: Flexible selection and deselection of relevant data points and AI support in the preparation of the sustainability report.
- Leadity: Modular ESG tool with a “VSME plus” approach. Focus on a quick start and lean reports with integrated templates.
- WeShyft: AI-based data capture and text generation as well as intelligent approval workflows simplify reporting.
- Tanso: Individual definition of the scope of the report, data collection, automatic KPI calculations and report export in several formats.
Numerous other ESG software solutions also offer VSME modules or are currently working on them. The German Sustainability Code (DNK) and Greenomy are also planning to publish their VSME solutions in the (late) summer.
We have updated the CSR tool overview with numerous CSRD solutions and added ‘VSME’ as a reporting framework.
Avoid common mistakes when selecting the VSME tool
Choosing a VSME tool should be done strategically – because a wrong decision can lead to frustration, lost time or even incorrect reports. Here are the most common pitfalls to avoid:
1. select oversized tools
Many companies hastily resort to complex ESG suites, which are actually intended for large corporations with comprehensive reporting obligations (in accordance with ESRS). For small companies with manageable reporting obligations, such a system can appear overpriced and overloaded. A lean, VSME-focused approach is often more effective.
2. underestimate data protection aspects
With cloud-based tools in particular, it is essential to check how sensitive company data is handled. In the absence of GDPR compliance, hosting in Europe or transparent data protection notices, there is a risk of compliance risks – even outside of the actual sustainability reporting.
3. ignore the needs of the users
Reports are not created by IT departments, but often by sustainability officers, managing directors or communication managers. If they are not involved in the selection and test phase at an early stage, there is a risk of acceptance problems or being overwhelmed by the user interface.
4. do not use a test phase
Many providers offer free demos or test accounts. These options are often not used – yet they are a valuable instrument for realistically testing the practicality and accuracy of a tool in advance.
VSME tool as an enabler of the sustainability strategy
The VSME standard provides small and medium-sized enterprises with a compact, voluntary framework for their sustainability reporting for the first time – tailored to their real possibilities. VSME tools can considerably simplify, structure and professionalize this reporting.
But not every company necessarily needs a software solution. Those with very lean reporting or who are still in the orientation phase can also take their first steps with well-designed templates. Tools develop their greatest added value when they are used in a targeted manner, for example for automated text creation, data integration or structured teamwork.
Our advice: Don’t choose the “best tool in general”, but the one that best suits your company. And above all: get started – because sustainable transformation requires not only good intentions, but also clear structures and reliable systems.
