Everything you need to know about the VSME standard

The VSME standard is a European framework to help non-listed SMEs structure their sustainability reporting in a simple, proportionate and effective way.

The VSME standard: sustainability reporting tailored to SMEs

The VSME (Voluntary Sustainability Reporting Standard for Non-Listed SMEs) is a European initiative to simplify sustainability reporting for non-listed small and medium-sized enterprises. Unlike large companies subject to the CSRD, SMEs are not required to publish sustainability reports. However, banks, investors and business partners increasingly ask for sustainability data.

Basic module

11 essential indicators
Mandatory module
Key topics (GHG emissions, waste management, social policies, etc.)

Narrative module

9 additional indicators
Voluntary module
Strategic topics (e.g. climate transition plan, climate risks, human rights, etc.)

Who does the VSME standard apply to?

VSME is aimed at micro businesses and non-listed SMEs in Europe. Here are the size thresholds set by EU directive 2013/34/EU:

Micro businesses: annual turnover or total balance sheet ≤ €2 million. Fewer than 10 employees.
Small enterprises: annual turnover ≤ €10 million or total balance sheet ≤ €5 million. Fewer than 50 employees.
Medium-sized enterprises: annual turnover ≤ €50 million or total balance sheet ≤ €25 million. Fewer than 250 employees.

Although VSME is voluntary, it is strongly recommended for companies that want to:

Meet partners’ sustainability expectations (banks, investors, clients).
Improve sustainability performance and cut costs (energy, waste, etc.).
Promote a more responsible economy by embedding sustainable practices in day-to-day management.
Prepare for future non-financial reporting requirements.

Entreprises et professionnels concernés par la norme VSME

For SMEs

Simplicity

Two modules (Basic and Comprehensive) to suit each company’s size and needs.

Easier access to finance

Banks and investors favour companies that can demonstrate their sustainability commitment. VSME strengthens your credibility and can unlock favourable loans or grants.

Cost reduction

By tracking energy use, waste or social practices, you can streamline processes and save money.

Stronger brand reputation

Structured sustainability reporting showcases your commitment to customers, partners and staff, boosting your appeal.

Readiness for future regulation

Stay ahead of sustainability legislation and avoid rushed last-minute compliance.

For accountants

New revenue stream

Offer VSME advisory to clients to diversify your services and grow revenue.

Client retention

By helping clients master sustainability reporting, you position yourself as a strategic partner—not just a bookkeeper.

Competitive differentiation

Firms that embed sustainability in their expertise stand out and attract clients who care about these issues.

Process optimisation

With tools like 13%, fold sustainability data collection and analysis into your existing accounting workflows—without extra admin burden.

Why adopt the VSME standard?

Adopting VSME is more than compliance—it is a performance lever for SMEs and a business opportunity for accountancy practices.

VSME helps you to:

Meet growing expectations from banks, investors and partners for transparency on your sustainability practices.
Find savings by analysing consumption (energy, water, waste) and improving processes.
Strengthen your reputation by communicating your sustainability commitments—attracting customers and talent.
Anticipate regulatory change and avoid costly, rushed compliance projects.
Reduce the environmental footprint of SMEs, which make up a large share of the European economy.
Promote a more responsible economy by embedding sustainable practices in day-to-day management.
Raise awareness and engage businesses on sustainability—creating a virtuous circle.