Voluntary reporting standard for SMEs (VSME)
Andries Scheerboom – Leadenhall Market, London (1865)
Small European companies are not required to complete corporate sustainability reports, unless they are in specific regulated industries. However, there are good reasons to develop such reports, even if they are not legally bound to do so.
The European Financial Reporting Advisory Group (EFRAG) created a voluntary standard which is inspired by the rules which govern large firms, the Corporate Sustainability Reporting Directive (CSRD).
The Voluntary reporting standard for small companies (VSME) is for non-listed micro, small and medium enterprises. It is a simple and standardised framework that covers relevant environmental, social and governance (ESG) issues such as sustainability goals, energy and greenhouse gas emissions, biodiversity, resource use and workforce safety. There are two versions: a Basic module which covers eleven topics and a Comprehensive module which expands upon them.
Benefits of completing a VSME
- Understand your business better. Identify new value you can provide to your customers and ways to improve efficiency and lower costs in your operations.
- Satisfy information requests from banks and investors. Improve access to green financing.
- Satisfy information requests from large suppliers and customers. Meet their procurement criteria.
- Market yourself as serious about sustainability to customers, suppliers, partners and potential employees.
- Improve the management of sustainability issues you face. Identify and reduce potential risks.
- Contribute to a more sustainable and inclusive economy.
Example report
If you would like to see an example of how a VSME could look, see the report we completed for our own operations.
Författare David J. Cord’s VSME sustainability report 2024
Want to learn more? Contact us at info at davidjcord.com
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