VSME and Materiality
Understanding how the VSME standard approaches materiality in sustainability reporting through different disclosure categories.
The 'If Applicable' Principle
A key feature of the VSME standard is its proportionate approach to disclosure. Not all data points apply to every company. Certain disclosures only apply to specific circumstances, and the instructions provided in each disclosure specify when information is to be reported.
When a disclosure is marked as 'if applicable' and is omitted from a report, it is assumed that the disclosure is not applicable to the undertaking. This reduces burden while maintaining transparency where it matters most.
From the VSME Standard
"Certain disclosures only apply to specific circumstances. In particular, the instructions provided in each disclosure specify such circumstances and the information that is to be reported only if considered 'applicable' by the undertaking. When one of these disclosures is omitted, it is assumed to not be applicable."
Three Disclosure Categories
Mandatory
Core disclosures that all VSME reporters must include in their sustainability report.
If Applicable
Disclosures required only when specific circumstances apply to your business operations.
May Disclose
Optional disclosures for companies seeking enhanced transparency beyond requirements.
VSME at a Glance
Basic Module
47 data pointsHigher proportion of mandatory disclosures (55%)
Comprehensive Module
41 data pointsHigher proportion of 'if applicable' disclosures (59%) — requires more judgment about relevance
Our Approach to Optional Disclosures
Selko Report strives to make the VSME reporting process as accessible as possible for SMEs. Currently, our platform does not include "May Disclose" disclosures such as the land use metrics in B5: Biodiversity or the entire optional C5: Additional Workforce Characteristics module. As the VSME standard gains wider adoption and demand for these optional data points increases, we will expand our service to cover these disclosures.
What Does 'If Applicable' Mean in Practice?
To better understand how the 'if applicable' principle works, here are some concrete examples from the VSME standard:
Multi-country operations
Employee breakdown by country is only required if your company operates in more than one country. Single-country businesses can omit this.
Gender pay gap
Companies may omit gender pay gap reporting if headcount is below 150 employees (reducing to 100 from June 2031).
Climate transition plan
If you operate in a high-impact climate sector and don't have a climate transition plan, you're required to state whether and when you intend to adopt one.
Pollution reporting
Detailed pollution data is only required if you're already reporting via regulatory requirements or an environmental management system.
Key Takeaways
- VSME is designed to be proportionate — not everything applies to every company
- Omitting an 'if applicable' disclosure simply means it doesn't apply to your situation
- This approach reduces burden while maintaining transparency where it matters most
Continue Learning
Explore the individual VSME modules to understand the specific disclosure requirements for your business.
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