VSME Reporting

VSME - Advisory Services in Reporting

VSME (Voluntary Sustainability Reporting Standard for non-listed SMEs) is a voluntary ESG reporting standard developed by EFRAG and officially recommended by the European Commission as a practical tool for the SME sector.

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The VSME standard was created in response to growing ESG reporting requirements faced not only by large entities covered by the CSRD but also by smaller companies that are part of supply chains. VSME is thematically aligned with European Sustainability Reporting Standards (ESRS), but it is written in plain language and tailored to the realities of micro, small, and medium-sized enterprises.

Who is the VSME standard for?

VSME is primarily intended for:

non-listed micro, small, and medium-sized enterprises (SMEs) with up to 1,000 employees,
private sector companies not directly subject to CSRD,
public sector entities,
temporarily, selected larger companies outside the mandatory CSRD scope.

In practice, VSME is particularly important for companies cooperating with large ESG-reporting entities that require non-financial data from their suppliers.

Structure of the VSME standard

SThe VSME standard is divided into two modules, allowing reporting scope to be tailored to the company’s size and ESG maturity:

Basic Module	Comprehensive Module
includes 55 data points, focuses on key ESG indicators, intended mainly for micro and small companies beginning ESG reporting.	includes approx. 41 additional data points, expands disclosures with more detailed information, recommended for medium-sized companies or those seeking greater transparency for banks, investors, and business partners.

What areas does VSME reporting cover?

The thematic scope of VSME aligns with ESRS and includes four key ESG pillars:

Environment (E) - emissions, energy use, climate impact, waste management
Social & workforce (S) - working conditions, equality, safety
Human rights - ethical standards in the supply chain
Governance (G) - management structure, policies, regulatory compliance

As a result, VSME can serve as a first step toward full ESRS-compliant reporting in the future.

The “if applicable” principle - flexible ESG reporting

One of VSME’s key principles is “if applicable.” This means a company reports only the information that is genuinely relevant to its activities.

However, it must ensure:

transparency,
clear justification for omitting a data point.

This approach significantly reduces administrative burden and makes ESG reporting proportional to SME operations.

Why implement VSME in your organization?

Implementing VSME can deliver tangible benefits:

increased credibility with business partners and financial institutions,
easier cooperation with CSRD-covered companies,
improved access to financing (banks increasingly require ESG data),
better internal processes and risk management,
bstrengthened competitive advantage.

VSME and the future of ESG reporting for SMEs

Although voluntary, VSME is increasingly becoming the market standard for ESG data communication in the SME sector. For many companies, it represents a safe and strategic step toward potential future regulatory obligations.

If your company operates in the supply chain of large corporations or plans expansion and financing, VSME may be the simplest and most effective way to begin ESG reporting.

VSME reporting support by Crowe Poland

This service is aimed at companies that:

act as suppliers to large corporations and increasingly receive ESG questionnaires in tenders,
negotiate financing with banks, funds, or leasing companies,
want to organize non-financial data and use it in strategy and communication,
are preparing for potential future reporting obligations,
want to strengthen their employer brand by demonstrating that ESG is a real value, not just a declaration.

What challenges do clients most often bring to us?

They receive dozens of different ESG questionnaires from banks, investors, and clients - each in a different format.
They lack time and resources to track new regulations.
They fear ESG reporting will become another layer of bureaucracy.
Environmental, health & safety, and HR data are scattered across multiple systems and departments.
They are unsure how much to disclose externally and how to communicate ESG consistently to stakeholders.

The VSME standard was designed specifically to bring order to these challenges.

What does a VSME report include?

Basic Module (B1–B11), including:

general company information, structure, and certifications,
ESG practices, policies, and planned actions,
data on energy use, GHG emissions, water, waste, pollution, biodiversity,
key workforce, health & safety, remuneration, and training data,
information on corruption-related judgments and penalties.

Comprehensive Module (C1 -C9), expanding the report with:

business model and ESG strategy,
emission reduction targets and climate risk description,
additional workforce and human rights disclosures,
revenue from sensitive sectors and gender diversity in governing bodies.

Comprehensive VSME service

The Crowe team provides full support - from the first meeting to the final report and communication materials.

Diagnosis & kickoff workshop

Meeting with management and key departments.
Explanation of VSME and its benefits.
Determination of optimal scope: Basic only or Basic + Comprehensive.

Gap analysis

Comparison of VSME requirements with existing practices.
Identification of missing data and documents.
Recommendations for corrective actions.

Data collection & carbon footprint

Design of a simple system for environmental, workforce, and governance data.
Support in calculating carbon footprint (Scope 1 & 2, selected Scope 3) in line with the standard.

ESG strategy & recommendations

Development of ESG goals, priorities, and action roadmap.
Guidance on integrating ESG into operational, investment, and commercial decisions.

Report preparation & communication package

Preparation of a complete VSME report.
Communication package for stakeholders, including:
- executive and bank summary,
- client-facing materials (e.g., for tenders),
- website content and employee communications.

FAQ

Is VSME mandatory?

No. VSME is voluntary. However, many SMEs implement it because contractors, banks, and investors increasingly require ESG data.

Czym VSME różni się od ESRS?

How does VSME differ from ESRS?

a simplified ESG reporting framework,
written in clear, accessible language,
tailored to SME scale and capabilities.

ESRS, by contrast, is mandatory for large entities under CSRD and includes significantly more extensive reporting requirements.

Does VSME implementation require an audit?

The standard does not require an audit. However, banks, investors, or business partners may request additional verification in some cases.

Does VSME prepare a company for future regulatory obligations?

Yes. Because it aligns with ESRS, implementation is a natural step toward full ESG reporting if regulatory requirements expand in the future.

Let’s talk about VSME for your company

If you:

already receive ESG questionnaires from banks or clients,
plan major investment financing,
want to organize ESG before new regulations arrive,

We invite you to get in touch.

In a single conversation, we will show how VSME reporting can translate into real financial, business, and reputational benefits for your organization.