VSME

What it means

The VSME is the Voluntary sustainability reporting standard for non-listed (unlisted) small and medium-sized undertakings, developed by EFRAG and delivered to the European Commission in December 2024. It is voluntary and sits outside the CSRD, giving SMEs a single, proportionate way to respond to sustainability data requests.

It has two modules: a Basic Module of core disclosures and a Comprehensive Module of additional disclosures for SMEs whose business partners need more detail.

Why it matters

Even though the Omnibus reforms remove listed SMEs from mandatory CSRD scope, smaller companies are still asked for ESG data by banks, investors and larger customers. VSME standardises that data so an SME can answer once and reuse it. It is also the reference point for the value-chain cap: large CSRD reporters generally cannot ask companies with ≤1,000 employees for more than the VSME content.

How it relates to nearby concepts

VSME is a lighter, proportionate alternative to full ESRS reporting, aimed at companies outside mandatory CSRD scope.

Common misunderstandings

• VSME is mandatory or part of CSRD/ESRS: It is voluntary and separate. Its main leverage is as the cap on what large CSRD companies can demand from smaller suppliers.