Voluntary SME ESRS (VSME)

Introduction to the VSME Standard

The Voluntary Sustainability Reporting Standard for SMEs (VSME) offers companies with up to 1,000 employees a practical way to disclose essential sustainability information to their stakeholders. It is particularly useful for meeting the information needs of larger customers reporting under the CSRD as well as banks and financial institutions offering sustainable or ESG-linked financing.

As a voluntary standard, VSME is significantly less complex than ESRS and allows for greater flexibility in how sustainability topics are reported. This makes it an ideal entry point for companies starting their sustainability journey. Many organizations already take concrete actions—such as improving energy efficiency, reducing waste, increasing recycling, or engaging employees—but lack a structured way to communicate these efforts. A VSME report provides a clear, standardized, and transparent framework to present such initiatives and demonstrate progress to stakeholders.

Preparing a first VSME sustainability report helps companies begin systematic data collection, establish relevant KPIs, and gradually refine their sustainability strategy, policies, and reporting practices over time. It is a practical “learning-by-doing” approach that builds readiness for future regulatory or customer-driven reporting requirements.

Scandic Sourcing is a pioneer in VSME reporting and has, to our knowledge, published the first VSME sustainability report in Sweden. We also supported Svero Lifting AB, which published its first CSRD report and received a sustainability award for its efforts.

The VSME standard has been developed by EFRAG and is designed to ensure credibility while remaining proportionate and manageable for SMEs
If you are interested in developing your own sustainability report using the VSME format, we would be happy to support you. A VSME report is a strong, practical starting point for structured sustainability work and transparent stakeholder communication.

Read More:

Svero Lifting AB Publishes First CSRD Report and Wins Sustainability Award. - Scandic Sourcing

The VSME standard was developed by EFRAG: (Voluntary reporting standard for SMEs (VSME), Concluded | EFRAG). 

Seminar Highlights the potential of VSME-ESRS in voluntary sustainability reporting

CSRD Omnibus - Easing Reporting Burden