The feasible sustainability report for SMEs
VSME - briefly explained
The VSME is a voluntary reporting standard for small and medium-sized enterprises (SMEs) developed by the European Financial Reporting Advisory Group (EFRAG). It was designed as a supplement to the European Sustainability Reporting Standard (ESRS). It offers companies that are not subject to the reporting obligations of the CSRD a practical framework for sustainability reporting with manageable effort.
A revised version of the VSME standard is to be published as a voluntary, delegated act as part of the Omnibus Regulation. The new standard is intended to limit the reporting requirements along the supply chain to the contents of the VSME (so-called value chain cap) and thus reduce the “trickle-down effect” – the indirect passing on of reporting obligations along the supply chain.
VSME-Services
Our services for your implementation
Our experts are there for you – Every company has very individual requirements. Regardless of whether it is your first report or a change from existing frameworks such as GRI or ESRS: We offer you individual and tailor-made solutions to make your VSME process for more sustainability efficient and target-oriented.
We do the work for you! Our specialists know what is required and guide you through the entire process. Our VSME Enterprise package includes the entire management from preparation and implementation to final VSME reporting. In close coordination with you, we bring the stakeholders on board, prepare the data and identify optimization potential. In addition to the report, we provide you with a condensed presentation for your robust sustainability communication. Depending on your needs, we can assist you with further comprehensive sustainability projects or with an external audit by auditors.
- Kick-off workshop on the VSME roadmap and implementation
- Implementation of thematic workshops (E, S, G) on the VSME standard and knowledge building
- Data collection in accordance with VSME incl. regular jour fixe for project progress measurements and data validation
- Structured presentation of sustainability data in accordance with VSME requirements
- Content index for VSME reporting
- Final workshop with recommendations for action
VSME structure and central contents
Less effort, more flexible – for more essential sustainability
Documenting sustainability should be easier for smaller companies. If you have no fewer than 10 employees, EFRAG recommends using the Basic and Comprehensive modules. In both cases, only the topics relevant to the company need to be disclosed.
So that you know where the levers for more sustainability lie in your company, we at DFGE recommend carrying out a (reduced-requirements) double materiality analysis. It helps you to specifically identify the impacts, risks and opportunities (IROs) and align your sustainability strategy accordingly. This is the only way to identify fields of action, recognize innovation potential and increase your own competitiveness.
The Basic Module is the starting point for sustainability reporting by SMEs:
- General information on the company and on sustainability practices, policies, measures and targets
- Basic reporting on environmental, social and governance metrics
The Comprehensive Module is designed for SMEs that want or need to fulfill extended sustainability requirements.
- It includes detailed disclosures, including environmental topics such as climate risks, greenhouse gas reduction targets or voluntary disclosures on Scope 3 emissions.
- But it also includes additions to social and governance reporting, including topics such as gender diversity and human rights.
Voluntary sustainability reporting
The advantages of VSME for your company
- Reduced reporting requirements save your budget – the VSME is less complex but more practical and structured.
- Fulfillment of your customer and supply chain requirements – the VSME is based on the ESRS (keyword CSRD), so you are also compliant in the context of your supply chain.
- Increased transparency and credibility – for greater stakeholder trust.
- Stronger market presence and competitiveness – communicate transparently with a recognized reporting structure.
- Better financing opportunities – ESG reporting enables you to obtain credit interest rate advantages.
- Sustainability reporting as a management tool – systematic VSME integration improves your sustainability strategy and implementation.
- Future-proof – sustainability regulations are constantly evolving. Early implementation of VSME prepares you for future legal requirements.
VSME with DFGE
Why you should contact the DFGE for VSME
- Focus on the essential topics – It’s not about collecting as much sustainability data as possible, it’s about the right and important ones. Depending on your needs and goals, we help your company to operate more sustainably. The start is your double materiality analysis.
- Everything from a single source – We always take a holistic view of sustainability and accompany you on your VSME journey and beyond – e.g. with Corporate Carbon Footprint (CCF), Climate Transition Plan (CTP), risk and opportunity analyses, EU taxonomy or strategies, e.g. on biodiversity or circular economy.
- > 25 years of experience – Our experts support companies of all industries and sizes in the implementation of sustainability projects and reporting requirements according to internationally recognized standards such as TCFD, GRI or UNGC.
- We see ourselves as your partner – to minimize resources and effort on your side.
- We are not an advertising agency that makes your data prettier – Our roots are in research and that is how we still work today.
- Individual consulting – Our solutions are always geared towards your challenges.
