VSME
VSME as a voluntary sustainability report for SMEs. Is the standard suitable for your company? Structure and content explained simply.
The VSME, Voluntary Sustainability Reporting Standard for SMEs, is aimed at all companies that do not fall under the CSRD and are therefore not required to conduct the Double Materiality Assessment according to the ESRS. Since the Omnibus package entered into force on 18 March 2026, only companies with more than 1,000 employees AND more than €450 million net turnover (both criteria cumulative) remain in scope of the CSRD. The VSME serves as a foundation for everyone else who wishes to publish a sustainability report voluntarily.
This standard provides a good data point basis to meet the expectations of various stakeholders. In particular, Scope 1-3 emissions are becoming increasingly important. The VSME is also being broadened into the broader VS (Voluntary Standard), expected later in 2026.
Helpful tools for your sustainability report
Practical and interactive workshop for a better understanding and implementation of the VSME standard. Physical or digital.
Word template (& PDF) for a sustainability report according to the VSME standard.
Practice-oriented 3-hour workshop on conducting Scope 3 calculations according to the GHG Protocol. Physical or digital.
1. What is the VSME?
The VSME (“Voluntary Sustainability Reporting Standard for non-listed SMEs”) is a voluntary European sustainability reporting standard developed by EFRAG for small and medium-sized enterprises that are not directly subject to the CSRD reporting obligation. The aim is to provide SMEs with a practical, uniform framework for ESG reports, but without the complexity of the ESRS and without a Double Materiality Assessment, yet still with clear requirements.
With the EU Omnibus package now in force since 18 March 2026, the standard becomes even more important. Only companies with more than 1,000 employees AND more than €450 million net turnover (both criteria must be met at the same time) remain in scope of the CSRD. Everyone else falls out. The VSME is now the central reference point for sustainability inquiries along the value chain (“trickle-down effect”).
The VSME is being broadened into the ”VS” (Voluntary Standard), with a delegated act expected later in 2026. Building on the VSME (published by EFRAG in December 2024), the VS will also apply to non-SMEs with fewer than 1,000 employees that fall outside the CSRD scope. In addition, CSRD-obligated companies may not require value-chain partners with 1,000 employees or fewer to provide information beyond what the voluntary standard covers.
Significance of the VSME for companies
- Customers, banks, and business partners are increasingly demanding ESG information.
- Even companies not subject to CSRD are under data and evidence pressure.
- The VSME provides an upper limit for requested sustainability information while creating legal certainty.
2. How is the VSME structured?
The VSME is structured in a modular way and consists of two modules:
Basic Module
- comprises 51 data points (B1-B11)
- forms the minimum standard
- ideal for micro-enterprises or SMEs with limited resources
Comprehensive Module
- comprises between 42 and 50 additional data points (C1-C9)
- for companies that want to provide more detailed insights
- extends the report with additional environmental, social, and governance aspects
Content Focus Areas
- Environment (e.g., energy, emissions, resources)
- Social (e.g., working conditions, supply chain)
- Corporate governance (governance structures)
Some disclosures are mandatory, others follow the “if applicable” approach. These consequently only need to be reported if they are relevant to the company.
3. How should reporting be done?
The VSME provides clear structural guidelines, but no rigid format. What matters is:
Transparency and traceability
A report should disclose:
- Which topics affect the company?
- What data is available and how was it determined?
- What progress or challenges exist?
Systematic data collection
A structured process is recommended:
- Create orientation & clarify responsibilities
- Narrow down relevant topics
- Collect & prepare data
- Structure and write the report
- Communicate results
Optional Double Materiality Assessment
Unlike the CSRD, the Double Materiality Assessment is not required in the VSME.
Nevertheless, it can be useful to align reporting strategically. Should it be desired, we are happy to support its implementation.
4. What aids and tools are available?
SMEs can benefit from several digital support offerings:
1. New VSME digital tool (BMWE/BMDS)
An officially launched, free tool facilitates:
- Data collection
- Structuring
- Creation of a complete VSME report
2. DNK platform
The German Sustainability Code integrates both VSME modules into its platform, including a completeness check.
3. Industry guides & VSME templates
Some institutions provide practical sample reports and guides. With our VSME Word template or the VSME data point list, valuable time can be saved.
5. VSME completed: What comes next?
Upon completion of the report, the voluntary standard opens up new opportunities:
Improved data basis for strategic decisions
A structured ESG overview helps identify risks and seize opportunities.
Relief from ESG inquiries
Through the upper limit function, standardized information becomes reusable multiple times. For example, with customers, banks, or partners.
Perspective: Development toward ESRS
The VSME can be an entry point. Companies that later need to meet CSRD or ESRS obligations already have a solid foundation.
On 6 May 2026 the EU Commission published a draft of simplified ("revised") ESRS for consultation. The key changes: mandatory data points cut by over 60%, total data points by over 70%, and reporting costs per company reduced by over 30%. The materiality assessment is also being simplified. The final standards are expected around mid-2026. Companies building on the VSME now will be well placed once the revised ESRS take effect.
Continuous improvement
Sustainability reporting is a process. Regular updates, improvements, and monitoring therefore make sense, and effective measures should be implemented. Improving GHG accounting, especially Scope 3 calculation, can also be strategically very valuable.
Further reading and links
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6. Frequently Asked Questions (FAQ)
Is the VSME mandatory?
No. The standard is voluntary, but may become de facto relevant through customer or supply chain expectations. Moreover, it is officially recommended by the European Union as a voluntary standard for sustainability reporting.
What is the difference between the VSME and the VS (Voluntary Standard)?
The VSME (Voluntary SME Standard, published by EFRAG in December 2024) was originally designed for SMEs outside the CSRD scope. It is now being broadened into the VS (Voluntary Standard) via a delegated act expected later in 2026. The VS will also cover non-SMEs with fewer than 1,000 employees that fall outside CSRD. Existing VSME reports remain valid. Companies starting now can use the VSME as the foundation, as the VS builds directly on it.
For whom is the VSME worthwhile?
Especially for:
- SMEs without CSRD obligation
- Suppliers to large companies
- Businesses with ESG inquiries from banks/customers
Do I need a Double Materiality Assessment?
No. However, it can improve the quality and impact of the report. In addition, the DMA offers strategic value, including for identifying opportunities and risks for the company.
How many data points does the VSME comprise in total?
A total of around 190 data points in two modules. You can find details in our VSME data point list.
Can I create the report digitally?
Yes, there is an official digital tool that greatly simplifies creation.
Is CO2 accounting according to the GHG Protocol mandatory?
Disclosures on Scope 1 and Scope 2 emissions are required. Scope 3 can be reported optionally. Depending on the level of ambition, it therefore makes sense to integrate a valid calculation of the footprint.
How can CSR-Tools support me?
We are happy to support you with your VSME report through, for example, a VSME workshop, a template for your report, or on the topic of GHG accounting. Please contact us for individual inquiries or visit our services page.