ESRS VSME (Voluntary Sustainability Reporting Standard for non-listed Small and Medium Enterprises) is the simplified sustainability reporting standard published by EFRAG on 17 December 2024, specifically designed for European non-listed SMEs. It allows SMEs to structurally respond to ESG requests coming from large customers (Scope 3 supply chain disclosure) and banks (LSME questionnaires, EBA Pillar 3) with significantly lower compliance burden compared to full ESRS. TreeBlock natively supports both VSME modules (basic and comprehensive).
What is ESRS VSME and why was it created?
ESRS VSME is the voluntary sustainability reporting standard published by EFRAG on 17 December 2024 after a public consultation with over 2,000 responses. It targets non-listed SMEs in the EU, excluded from mandatory CSRD scope but de-facto involved in ESG reporting through supply chain (large customers ask Scope 3 to suppliers) and bank credit (banks subject to EBA Pillar 3 require ESG data from SME counterparties).
Without VSME, SMEs were exposed to hundreds of incompatible ESG questionnaires. VSME standardizes the request: an SME that publishes its VSME report has a single document that satisfies most customer and bank requests, drastically cutting questionnaire response time.
Structure: basic module (B1-B11) and comprehensive module (C1-C9)
The basic module contains 11 essential disclosures (B1 Basis for preparation, B2 Practices and policies, B3 Energy and GHG Scope 1+2, B4 Pollution, B5 Biodiversity, B6 Water, B7 Resource use and circular economy, B8 Workforce, B9 Health and safety, B10 Pay collective bargaining and training, B11 Corruption cases). The comprehensive module adds 9 advanced disclosures C1-C9 (strategy, climate targets, value chain workers, gender diversity).
VSME vs full ESRS: operational comparison
Full ESRS apply under CSRD to large companies, listed SMEs and non-EU subsidiaries; VSME is voluntary for non-listed SMEs. Full ESRS require 1,144+ potential datapoints, mandatory double materiality and external assurance, ESEF XBRL inline format. VSME requires 20-40 basic datapoints, simplified materiality, no mandatory assurance, free format. First VSME report: 60-120 hours vs 800-1500 hours for first full ESRS.
Data collected for VSME is directly reusable for full ESRS if your company later falls within CSRD scope.
Frequently asked questions about ESRS VSME
- What is ESRS VSME in short?
- ESRS VSME (Voluntary Sustainability Reporting Standard for non-listed SMEs) is the voluntary sustainability standard published by EFRAG on 17 December 2024 for European non-listed SMEs. Basic module B1-B11 (11 disclosures) plus optional comprehensive module C1-C9 (9 disclosures).
- Who should adopt ESRS VSME?
- Voluntarily applicable to all EU non-listed SMEs. Particularly recommended for: SMEs supplying large CSRD-scoped customers, SMEs seeking sustainable finance, SMEs targeting third-party ESG ratings or B Corp certification.
- How many datapoints does VSME require?
- Basic module: about 20-40 quantitative and qualitative datapoints (depending on materiality choices). Comprehensive module: 30-50 additional datapoints. About 20x lighter than full ESRS.
- Is external assurance required for VSME?
- No. External assurance is not mandatory for VSME. It is good practice if the document is used for ESG-linked credit access or third-party rating support. TreeBlock keeps full audit trail.
Prepare your ESRS VSME report with TreeBlock: cover the 11 basic-module disclosures in 60-120 hours and answer all ESG requests from customers and banks. Book a free demo to receive a free perimeter assessment.