B2: Practices, Policies and Future Initiatives
Disclosure requirements for practices, policies and future initiatives for transitioning towards a more sustainable economy.
In brief
VSME disclosure requirement B2 covers the company's practices, policies and future initiatives for managing its sustainability issues. The company must briefly describe its environmental, social and governance-related practices and state whether they are publicly available. If entity-specific sustainability themes are not yet formally described, this can be elaborated further under Comprehensive Module disclosure C2.
VSME Standard Reference
The following content is extracted from the official EFRAG Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), December 2024.
View original VSME Standard (PDF)Selko Insights
Entity-Specific Sustainability Themes
We have interpreted this section largely as a way for SMEs to disclose any entity-specific sustainability theme that is relevant for the company. In Selko Report, we have combined practices, policies and future initiatives together under the sustainability theme disclosure, as they are often interchangeable in practice for SMEs.
Public Availability Disclosure
While the VSME standard specifically mentions "public availability" in relation to policies only, our combined approach means that our users can also state whether their practices and future initiatives are publicly available. This provides a more comprehensive transparency disclosure.
Template and Omissions
In Selko Report, we do not follow the template provided as a suggestion by the standard (paragraph 78). Instead, when reading a company's VSME sustainability report generated through Selko Report, any omission of sustainability themes should be interpreted as the company not having a practice, policy or future initiative regarding that particular sustainability issue.
Describing Your Sustainability Themes in C2
If you are reporting using the Comprehensive Module (Option B), C2 extends this disclosure by asking you to briefly describe the practices, policies, or future initiatives you indicated in B2. This provides stakeholders with more context about what your sustainability themes actually entail.
View C2: Description of Practices, Policies and Future InitiativesRelated content
B1: Basis for preparation
VSME disclosure B1: the basis for preparing your report, the reporting entity and the options applied.
Read moreC2: Detailed description of practices
VSME disclosure C2: extended description of the practices and policies presented under B2.
Read moreB3: Energy and greenhouse gas emissions
VSME disclosure B3: energy consumption, energy mix and Scope 1 and Scope 2 greenhouse gas emissions.
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