Who is VSME for?
Understanding the target audience and applicability of the voluntary sustainability reporting standard.
In brief
VSME is primarily aimed at micro, small and medium-sized enterprises, but after the Omnibus changes it has effectively become the de facto standard for any company outside mandatory CSRD reporting. Companies report voluntarily for reasons such as stakeholder demand, competitive advantage, and preparing for future mandatory requirements. It suits both traditional SMEs and larger companies that fall below the revised CSRD thresholds.
The VSME standard was originally developed with micro, small and medium-sized enterprises (SMEs) at its core. These companies form the backbone of the European economy, representing over 99% of all businesses and employing around two-thirds of the workforce.
VSME fills this gap by providing a proportionate, accessible framework that respects the resource constraints of smaller organizations while still enabling meaningful sustainability disclosure.
Why report VSME if it's voluntary?
Stakeholder Demand
Large corporations, banks, and investors increasingly require sustainability data from their partners. A standardized framework strengthens relationships and opens new opportunities.
Competitive Advantage
VSME provides a framework to showcase your sustainability strengths, helping you differentiate in the marketplace and attract sustainability-conscious customers.
Future-Proof Your Business
Adopting VSME now builds internal capabilities and data collection processes needed to adapt to evolving expectations and future requirements.
Prepare for Mandatory Reporting
For companies outside CSRD, VSME offers a practical way to develop reporting capabilities for a smooth transition when requirements apply.
Beyond SMEs: The New De Facto Standard
While VSME was originally designed specifically for small and medium-sized enterprises, its relevance has expanded significantly. The Omnibus changes to mandatory sustainability reporting (CSRD) have altered the landscape of which companies fall under mandatory reporting requirements.
As a result, VSME has effectively become the de facto sustainability reporting standard for all companies operating outside the boundaries of mandatory CSRD reporting. This includes not only traditional SMEs, but also larger companies that do not meet the revised CSRD thresholds. For these organizations, VSME provides a credible, recognized framework for voluntary sustainability disclosure that aligns with European sustainability objectives.
Post-Omnibus Reality
After the Omnibus changes, VSME now serves as the primary sustainability reporting framework for:
- •All non-listed SMEs seeking a structured reporting approach
- •Companies previously expecting to fall under CSRD but now outside its scope
- •Organizations wanting to align with EU sustainability standards voluntarily
- •Companies preparing for potential future regulatory requirements
Getting Started
The decision to begin VSME reporting is increasingly driven by external stakeholders—whether that's a major customer requesting sustainability data, a bank inquiring about ESG performance, or the recognition that sustainability credentials are becoming essential for business growth.
Whatever your starting point, VSME provides a proportionate and practical framework that respects the resource constraints of smaller organizations while delivering the credibility and structure that stakeholders require.
Continue Learning
Explore more topics in the VSME Hub to deepen your understanding of the standard.
Return to VSME HubFrequently asked questions
Who is the VSME standard for?
VSME was originally developed with micro, small and medium-sized enterprises at its core, since these companies form the backbone of the European economy. Following the Omnibus changes, VSME has effectively become the de facto sustainability reporting standard also for larger companies that fall outside mandatory CSRD reporting.
Why report with VSME if it is voluntary?
Even though VSME is voluntary, reasons to adopt it include stakeholder demand, competitive advantage, future-proofing the business, and preparing for mandatory reporting. Large corporations, banks and investors increasingly require sustainability data from their partners, and VSME helps a company differentiate itself and prepare for evolving requirements.
Who does VSME serve after the Omnibus changes?
After the Omnibus changes, VSME serves as the primary sustainability reporting framework for, among others, all non-listed SMEs seeking a structured reporting approach, companies previously expecting to fall under CSRD but now outside its scope, and organizations wanting to align with EU sustainability standards voluntarily.
How should a company get started with VSME reporting?
The decision to begin VSME reporting is increasingly driven by external stakeholders, such as a major customer requesting sustainability data or a bank inquiring about ESG performance. VSME provides a proportionate and practical framework that respects the resource constraints of smaller organizations while delivering the credibility and structure that stakeholders require.
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