C1: Strategy: Business Model and Sustainability-Related Initiatives
Disclosure requirements for key elements of business model and sustainability strategies.
In brief
VSME disclosure requirement C1 addresses the company's business model and sustainability-related strategic initiatives in more depth than the Basic Module. The company should describe the key sustainability-related elements of its strategy and, where needed, formalize previously informal sustainability initiatives. This requirement is part of the Comprehensive Module and deepens the picture given by the Basic Module.
VSME Standard Reference
The following content is extracted from the official EFRAG Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), December 2024.
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Formalizing Informal Sustainability Initiatives
Part (d) of the standard asks how your strategy considers sustainability and how your business model aligns with it. For many SMEs, sustainability considerations may exist informally—through daily practices, values, or gradual improvements—without being documented as a formal strategy. This disclosure provides an excellent opportunity to articulate and summarize these often unwritten sustainability-related plans and initiatives. By completing this section, you're not just meeting a disclosure requirement; you're creating a foundation for more structured sustainability thinking in your organization.
Related 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 moreC3: GHG reduction targets
VSME disclosure C3: greenhouse gas emission reduction targets and the climate transition plan.
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