VSME standard introduced for SME sustainability reporting

The VSME (Voluntary Sustainability Reporting Standard for SMEs) has been developed to assist small and medium-sized enterprises in managing ESG (Environmental, Social, and Governance) data requirements. While the Corporate Sustainability Reporting Directive (CSRD) primarily mandates reporting for large companies with over 1,000 employees and annual turnovers exceeding 450 million euros, smaller firms are increasingly facing indirect pressure.

Small businesses often encounter ESG requests through supply chain requirements from large customers, financing assessments by banks, or inquiries from investors regarding energy consumption, emissions, and labor conditions. The VSME standard provides a simplified, uniform method for these smaller entities to collect and provide sustainability data to their business partners and financial institutions.