For the past two years, many SMEs in Europe have been receiving requests for ESG information: client questionnaires, bank requests, requirements in tenders.
The problem?
Most SMEs are not directly subject to CSRD reporting obligations, yet they must answer dozens of questions about their environmental, social or governance impact.
ESG stands for:
- E (Environment): energy, CO₂ emissions, waste
- S (Social): working conditions, employee safety
- G (Governance): company organisation, ethics, risk management.
It is precisely to address this situation that the VSME was created.
In this article, we will explain simply:
- what the VSME is
- why it was created
- and how it can help SMEs manage ESG requests.
What is the VSME?
The VSME (Voluntary Sustainability Reporting Standard for SMEs) is a voluntary ESG reporting standard designed specifically for SMEs.
In simple terms: it is a framework that helps SMEs organise their sustainability information.
It was developed by the European Financial Reporting Advisory Group (EFRAG), the body responsible for preparing European sustainability reporting standards.
EFRAG is also the organisation that designed the ESRS standards used in the European CSRD directive.
The purpose of the VSME is therefore simple: to enable SMEs to structure their ESG information without having to apply the full complexity of ESRS standards.
Why is this simplification important?
Because SMEs:
- have fewer resources
- do not always have a CSR team
- often have to respond to ESG requests on top of their day-to-day activities.
- The VSME therefore offers a simpler and more proportionate approach.
Why was this standard created?
Since the CSRD (Corporate Sustainability Reporting Directive) came into force, large companies must publish detailed information on their environmental and social impacts.
But above all, they must analyse their value chain.
The value chain refers to all the companies involved in creating a product or service:
- suppliers
- subcontractors
- service providers
- partners.
This means large companies must collect ESG information from their partners.
Result: Many SMEs today receive requests for information on:
- their CO₂ emissions
- their energy consumption
- their social policies
- their governance practices
- their relationships with their suppliers.
These requests often take the form of ESG questionnaires.
The problem?
Each client may send a different questionnaire.
Some SMEs receive several ESG questionnaires per year, sometimes with more than 100 questions.
According to a study by PwC, nearly 70% of companies report difficulties collecting reliable ESG data in their value chain.
The VSME was therefore designed to simplify and harmonise these requests.
The idea behind the VSME: a common language
The VSME works as a common ESG language for SMEs.
Rather than responding to each questionnaire separately, an SME can:
- structure its information according to the VSME
- keep this information in a clear format
- share this data with its partners.
In other words: the VSME makes it possible to prepare information once and reuse it multiple times.
This can significantly reduce the time spent responding to ESG requests.
Many SME leaders discover the VSME only when they start receiving ESG questionnaires from their clients or bank.
If you are in this situation, it is often more efficient to structure your information once and for all rather than responding on a case-by-case basis.
What does the VSME contain?
The VSME covers the three main pillars of ESG.
The objective is not to produce a complicated report, but to gather essential information.
Environment
Examples of information requested:
- energy consumption
- greenhouse gas emissions
- waste management
- use of natural resources.
Greenhouse gas emissions correspond to CO₂ or other gas emissions that contribute to climate change.
Social
This concerns the relationship between the company and its employees.
For example:
- working conditions
- health and safety
- employee training
- diversity.
Governance
Governance refers to how the company is managed and organised.
Examples:
- management structure
- ethical practices
- risk management
- internal policies.
The benefits of the VSME for SMEs
The VSME can bring several concrete benefits.
1. Responding more easily to ESG questionnaires
With a structured framework, the SME already has the information needed to respond to partner requests.
This makes it possible to save time and avoid redoing the work with each request.
2. Better dialogue with banks and investors
Banks increasingly request ESG information to analyse risks.
According to a study by the European Central Bank, financial institutions are progressively integrating climate criteria into their financing decisions.
Having structured information therefore makes it possible to:
- facilitate exchanges with banks
- demonstrate that the company manages its risks.
3. Strengthen credibility with partners
An SME capable of clearly presenting its ESG information can:
- reassure its clients
- respond more easily to tenders
- improve its reputation.
4. Anticipate regulatory developments
Even if not all SMEs are currently covered by European obligations, expectations for transparency will continue to increase.
Putting in place a structured approach therefore makes it possible to anticipate future requirements.
Is the VSME mandatory?
No.
The VSME is a voluntary standard.
This means it is not imposed by law.
However, it is gradually becoming a useful tool for managing ESG requests.
Companies, banks and investors are increasingly looking for comparable and structured information.
The VSME can therefore serve as a simple framework for meeting these expectations.
In summary
The VSME is:
- a simplified ESG standard for SMEs
- designed to structure sustainability information
- a tool to respond more easily to ESG requests.
In a context where ESG questionnaires are multiplying, it can become a strategic lever for SMEs.
Need help structuring your ESG information?
Many SMEs today receive ESG requests without knowing:
- which information to provide
- how to structure their data
- or where to start.
At Eco Fluent Solutions, we support SMEs to:
- structure their ESG information
- respond effectively to ESG questionnaires
- implement a simple approach based on the VSME
You can book a call to analyse your situation and identify the first actions to put in place.
Eco Fluent Solutions is a consultancy specialising in ISO management systems and sustainability governance.
We support SMEs in turning ISO and ESG requirements into operational systems, without over-documentation or unnecessary complexity.
SME support: discover how to structure your responses to ESG and VSME questionnaires.
