Get started quickly with VSME (plus). Think strategically ahead.

VSME (Voluntary Sustainability Reporting Standard for non-listed Micro-, Small- and Medium-sized Enterprises) is a voluntary reporting framework for small and medium-sized enterprises (SMEs) that wish to document their sustainability performance in a structured and comparable manner – without the bureaucratic burden of the Corporate Sustainability Reporting Directive (CSRD). VSME was developed by the European Financial Reporting Advisory Group (EFRAG) on behalf of the European Commission.

VSME is specifically tailored to the needs of SMEs and is based on the core principles of the CSRD – albeit in a significantly simplified, practical form.

VSME consists of a core module containing eleven ESG disclosures and an optional comprehensive module covering nine additional topics. In this way, VSME offers a balanced level of transparency – without placing an excessive burden on small businesses.

When combined with modern VSME software such as leadity, VSME can be implemented particularly efficiently. Furthermore, leadity helps companies to further develop their VSME reporting in a targeted manner – using the exclusive VSME plus extension approach. This enables companies to incorporate industry-specific ESG issues and position themselves strategically for the future.

VSME is aimed at small and medium-sized enterprises (SMEs) that are not currently subject to the CSRD’s statutory ESG reporting requirements – but are nonetheless facing increasing demands, for example from customers, banks, ESG ratings or public tenders.

VSME is particularly relevant for companies that:

• wish to prepare professionally for future regulations
• want to efficiently meet ESG requirements across their supply chains
• seek funding or better financing terms
• want to showcase their sustainability performance – even without a legal obligation

Implementation is particularly efficient with VSME software such as leadity. Here, the entire VSME, including all mandatory and supplementary information, is digitally mapped. Companies can start with exactly what they need – and can flexibly expand their VSME reporting via VSME plus. This makes leadity the ideal solution for SMEs that not only want to report, but also wish to leverage sustainability specifically as a competitive advantage.

VSME offers small and medium-sized enterprises a clear and structured way to document their sustainability performance in a transparent manner – without the complexity of the CSRD.

With just around 140 data points, VSME is significantly more streamlined than the CSRD’s ESRS standards, which require up to 1,200 disclosures. At the same time, VSME is aligned with regulatory requirements, thereby ensuring interoperability for stakeholders, banks and ESG ratings.

Further benefits of VSME:

• Modular structure: Companies can choose between a basic and a comprehensive module
• Minimal effort: No requirement for an external audit, no need for extensive consultancy
• More funding opportunities: organisations that make their ESG performance transparent improve their standing with banks, investors and in tenders

Using specialised VSME software such as leadity makes implementation particularly efficient. The software not only covers all VSME content but also expands on it with VSME plus to include relevant topics such as the supply chain, climate risks and sector-specific ESG aspects. Companies thus benefit from credible, future-proof and practical ESG reporting.

At first glance, VSME covers the key areas of ESG reporting – namely the environmental, social and governance aspects.

The core module covers eleven standardised disclosure topics – including energy consumption, workforce composition, diversity, working conditions and governance. The comprehensive module supplements these with nine further topics, such as Scope 3 emissions, climate risks and human rights due diligence.

In total, VSME comprises around 140 structured data points – divided into qualitative text fields, yes/no questions, actions, objectives and simple key performance indicators (KPIs).

With professional VSME software such as leadity, this information can be digitally captured, structured and automatically consolidated into a comprehensive VSME report. VSME plus also allows industry-specific ESG topics to be added – for example, for tenders, ESG ratings or stakeholder communication. In this way, a voluntary reporting framework is transformed into an effective management system for sustainable business practices.

Basic VSME reporting can, in principle, also be carried out in Excel – particularly for small businesses that wish to use only the basic module. For one-off, basic VSME reporting or initial data entry, Excel can be a practical solution.

In practice, however, VSME reporting in Excel quickly reaches its limits: VSME is deliberately kept streamlined – but even the approximately 140 data points from the basic and comprehensive modules already represent a vast amount of ESG information, measures and supporting documentation that must be managed in a structured manner. Manual data maintenance, a lack of automation, unclear allocation of roles and a high risk of errors make VSME reporting in Excel time-consuming, confusing and inefficient in the long run.

Anyone who wants to update VSME reporting regularly, manage it across multiple sites or incorporate strategic ESG topics will benefit significantly from VSME software such as leadity. After all, sustainable business practices do not end with filling in a reporting spreadsheet. Especially when companies wish to communicate their ESG performance in a credible, sector-specific and future-proof manner, more is needed than just an Excel list. With leadity, VSME reporting becomes an integral part of a holistic sustainability strategy: VSME plus enables you to go beyond the standard requirements and focus precisely on the ESG topics that are truly relevant to your industry, your customers and your stakeholders. In this way, a streamlined reporting standard becomes a strategic management tool – for sustainability with a systematic approach and real impact.