What VSME is

VSME (Voluntary Sustainability Reporting Standard for SMEs) is a voluntary sustainability reporting standard developed by EFRAG for SMEs. EFRAG delivered the VSME standard to the European Commission in December 2024, and the Commission issued a formal recommendation on it in the summer of 2025. The details are being finalised further as part of the Omnibus I package, but the core idea (a lighter, SME-oriented reporting template) is already in wide use.

VSME was designed as a response to the situation where CSRD-obligated large companies begin requesting sustainability data from their supply chains. Without a common template, every customer asks slightly differently. VSME provides one answer that can be sent to many.

VSME is not mandatory for SMEs, but many customers, investors, and supply chain coordinators effectively require it in practice.

Who this is for

SMEs whose customers or supply chain lead companies are requesting sustainability data
Companies seeking financing where the lender requires ESG information
Organisations that want to prepare for future reporting obligations ahead of time
Companies that want to structure their sustainability work with one light template, not ten different questionnaires

What VSME covers

VSME has two modules:

Basic Module covers a general sustainability overview, emissions data (Scope 1 and 2, plus the most relevant Scope 3 categories), basic energy, water and waste information, and basic data on personnel, occupational health, and governance. This is intended as the minimum content for all users.

Comprehensive Module extends the Basic Module with additional information that large customers or financiers may specifically ask for: more detailed emissions and energy data, climate strategy, human rights in the value chain, working conditions, and business ethics. This is used when the Basic Module doesn’t cover the questions being asked.

Both modules are flexible: not every field is always required, and NGS helps scope what is actually worth reporting in your situation.

How NGS does it

We start by identifying what the customer or investor actually needs. The initial request is often broader than necessary. We then collect the data together with you, complete the reporting framework, and deliver a finished report you can send onward.

Data collection requires access to your baseline information and short answers to our questions. The bulk of the work, coordination and drafting the report, sits with us.

Carbon accounting (Scope 1–3) is done as part of the same project if needed. Many SMEs use this project to run their first calculation.

What you get

Finished VSME-aligned sustainability report (Basic or Comprehensive Module)
Baseline carbon accounting (Scope 1–2 and required Scope 3 categories)
Methodology documentation and source references
Summary for customer-facing communication
Support in answering follow-up questions from the report’s reader

Frequently asked questions

Is VSME mandatory?

No. VSME is a voluntary standard for SMEs. The practical obligation typically comes through the supply chain or a financier.

How does VSME differ from CSRD?

CSRD is an EU mandatory sustainability reporting obligation for large companies. VSME is a lighter, voluntary standard designed for SMEs: the content is significantly more compact and the reporting process is lighter.

How long does the project take?

Typically 4–8 weeks from data collection to a finished report. Timeline depends primarily on how quickly the required information can be gathered on your side.

Is the VSME standard already in final form?

The core content is available and already in wide use. Some details are still being finalised as part of the Omnibus package. We build the report so it is usable in its current form and adaptable to fine-tuning.

VSME Reporting