Simplified Reporting: The VSME Standard for Small Businesses

Small and medium-sized enterprises often consider ESG reporting to be relevant only for large corporations. However, transparency requirements are already cascading downward — banks request non-financial data, clients are interested in sustainable practices, and investors focus on responsibility.

What is the essence?

The key feature of VSME is simplicity.

It two levels of reporting:

The basic set includes only 11 indicators

These include greenhouse gas emissions (Scope 1–2), information on energy and water consumption, basic anti-corruption practices, and elements of governance transparency.

The extended set includes 9 additional indicators

These relate to more ambitious aspects:

• emission reduction targets
• transition plans to renewable energy
• more detailed governance policies

What are the 11 basic VSME indicators?

Greenhouse gas emissions

Scope 1 — all direct emissions generated by the company

Scope 2 — indirect emissions related to the consumption of electricity, heat, or steam

Waste generation

The volume of waste generated, how it is classified, and where it is transferred

Working conditions

Information on workplace safety, availability of employment contracts, insurance, or social benefits

Energy consumption

How much electricity, gas, or fuel the company uses annually

Water consumption

The volume of water used in production or office operations

Anti-corruption policy

Whether the company has internal rules to prevent bribery and abuse, and whether employees sign a code of ethics

Gender balance

The share of women and men among employees and management

Community engagement

Whether the company supports local initiatives and has CSR programs

Audit and transparency

Whether the company’s financial and non-financial reporting is audited by an independent auditor and whether results are publicly disclosedLabor rights

Compliance with minimum wage requirements, prohibition of child labor and discrimination

Corporate governance

Who is on the board of directors or management, how key decisions are made, and whether ownership structure is transparent

Together, these indicators provide a minimum necessary understanding of how well a company aligns with sustainable development principles.

For small businesses, this is not “just another form,” but a universal “business card” for banks, investors, and large clients.

More details: https://ukraine-oss.com/polegshena-zvitnist-standart.../