What is VSME
The Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) is an ESG reporting framework developed by the European Financial Reporting Advisory Group (EFRAG) at the request of the European Commission. It was formally delivered to the European Commission on 17 December 2024 and officially endorsed via a Commission Recommendation in July 2025.
The VSME was created in response to a growing problem: small and medium-sized businesses were receiving a flood of uncoordinated, inconsistent ESG data requests from banks, investors, and larger corporate clients. The VSME provides a single, standardised framework to replace these ad hoc questionnaires , reducing administrative burden and helping SMEs respond more efficiently.
Who is it for?
The VSME is designed for non-listed micro, small, and medium-sized enterprises that fall outside the mandatory scope of the EU's Corporate Sustainability Reporting Directive (CSRD). If your business is not a large, listed company, you are not legally required to report under CSRD — but you may still face increasing demands for sustainability data from your supply chain partners, lenders, and investors. The VSME gives you a structured, credible way to respond to those demands.
The Two-Module Approach
The VSME uses a modular approach to accommodate businesses at different stages of their sustainability journey.
Basic Module
The entry-level module, suitable for micro-enterprises and SMEs new to ESG reporting. It covers around 50 essential data points across three areas:
Environmental: energy use, Scope 1 and 2 greenhouse gas emissions, pollution, and water
Social: workforce numbers, training, fair wages, and health and safety
Governance: anti-corruption policies and legal fines
The Basic Module must be completed in full if chosen, and it serves as the required foundation for any business wishing to progress to the Comprehensive Module.
Comprehensive Module
For SMEs with more complex operations or greater stakeholder requirements. It builds on the Basic Module and adds more detailed disclosures across four topic areas:
Strategy: business model impacts, supply chain insights, and sustainability integration
Environment: GHG reduction targets, climate transition plans, pollution, and water management
Social: about policies, human rights due diligence, and diversity, equity, and inclusion initiatives
Governance: board diversity, revenue from controversial sectors, and ethics policies
SMEs may choose to complete only the Basic Module or both modules together, but the Comprehensive Module cannot be completed without the Basic Module.
VSME in KEY ESG
Benefits of reporting VSME in the KEY ESG platform:
Maximise your existing Data
Already reporting on Carbon Accounting or SFDR? You've already collected most of the data points needed for CSRD vSME frameworks. No duplicate data entry - just intelligent reuse of your existing reporting foundation.
Choose Your Depth of reporting
vSME Basic: 30 core data points for essential compliance
vSME Comprehensive: 80+ data points for detailed stakeholder reporting and investor requirements
Seamless Integration
• One platform, multiple frameworks
• AI-powered validation across all reports
• Reduce reporting time by 60%
• Single source of truth for all ESG data
Identify relevant metrics based on integrated materiality matrix and report efficiently with existing data (COMING SOON)