VSME vs. CSRD: Key Differences Explained

There is a question that comes up in almost every conversation about sustainability reporting with SMEs. It is not about data collection, or systems, or timelines. It is a simpler, more fundamental question: If CSRD is coming anyway, why should I invest time in VSME right now? 

It is a fair question. And the fact that it gets asked so often tells us something important: the relationship between these two frameworks is genuinely confusing. Not because the frameworks themselves are complicated, but because they are constantly mentioned in the same breath, as if they were competing versions of the same thing. 

They are not. Here is what you need to understand: 

• CSRD is a regulatory obligation for large companies. VSME is a voluntary communication tool built specifically for SMEs. 
• VSME is not a mini-CSRD. It is CSRD-compatible, which means your data is recognized and usable, without the full compliance burden. 
• With osapiens Easy Start, SMEs have a purpose-built solution to implement VSME quickly, with a foundation that scales as your business grows. 

CSRD and VSME serve different purposes 

CSRD, the Corporate Sustainability Reporting Directive, is a regulatory obligation. It was designed by the EU to require large companies to disclose detailed, auditable sustainability information. The companies in scope are defined by size: turnover, balance sheet, and number of employees. If you exceed those thresholds, you report under CSRD. If you do not, you do not. 

VSME, the Voluntary Sustainability Reporting Standard for SMEs, is a communication tool. It was developed by EFRAG specifically for small and medium-sized enterprises that want to report sustainability information in a structured, credible way, without the compliance overhead of a large-company framework. 

The distinction matters. CSRD defines who must report and what they must prove. VSME defines how an SME can communicate what it is doing, coherently, comparably, and without excessive burden. One is a legal requirement. The other is a practical instrument. They do not overlap because they do not target the same audience or serve the same function. 

VSME is not a mini-CSRD 

This is perhaps the most important thing to understand, and the most commonly misunderstood. VSME was not designed as a simplified version of CSRD. It does not follow the same logic, the same structure, or the same ambition. Thinking of it as “CSRD lite” will lead you to the wrong conclusions. 

What VSME is, however, is CSRD-compatible. The data points and disclosures in VSME were deliberately aligned with the European Sustainability Reporting Standards that underpin CSRD. This means that information reported under VSME is recognizable and usable by large companies operating under CSRD, particularly when they need sustainability data from their supply chains. 

The difference between compatible and complete is crucial. VSME gives you a solid, credible foundation. It does not give you a CSRD-compliant report. If and when your company crosses the thresholds that bring CSRD into scope, additional work will be required. Choosing VSME now does not mean you have done that work early. It means you have built something useful that can grow. 

VSME in practice: three scenarios for SMEs 

The right way to think about VSME is not in relation to CSRD, but in relation to your own situation. Three scenarios cover most of the SMEs we work with. 

1. If you intend to stay an SME 

CSRD will not become your obligation. But the demand for sustainability data will reach you regardless, through customers, banks, insurers, and public procurement. VSME gives you a structured way to respond to those requests without building a reporting apparatus from scratch each time. It is an investment in clarity and credibility, not in compliance. 

2. If you are growing and may cross CSRD thresholds 

Starting with VSME is genuinely strategic. The data discipline, internal processes, and reporting culture you build now will be the foundation for what comes later. Companies that arrive at CSRD scope without any prior sustainability data infrastructure face a significantly more disruptive transition. VSME does not do the CSRD work for you, but it puts you in a much better starting position. 

3. If you supply companies that are already under CSRD 

This is where the CSRD-compatibility of VSME becomes directly valuable. Large companies in scope are required to report on their value chain, which means they need sustainability data from their suppliers. Because VSME aligns with ESRS, the disclosures you produce can feed directly into their reporting processes. You become easier to work with. In some cases, you may become a preferred supplier. 

VSME provides a reliable foundation for sustainability reporting  

Sustainability regulation will continue to evolve. Thresholds will shift. Standards will be updated. What is voluntary today may become expected tomorrow, not always through law, but through market pressure, financing conditions, and customer expectations. 

The case for VSME does not rest on predicting how regulation will develop. It rests on the value of having reliable, structured sustainability data about your own business, now, regardless of what the rules say. That data helps you understand where you stand. It makes you a more informed decision-maker. It makes you easier to work with. And it gives you something credible to show, whatever the question being asked. 

VSME is not a response to CSRD. It is a pragmatic answer to a simpler question: how does an SME communicate its sustainability performance in a way that is credible, efficient, and useful? The answer to that question does not change depending on what large companies are required to do. 

Getting started with osapiens EASY START Reporting Essentials Suite 

For SMEs looking to put VSME into practice, the osapiens EASY START Reporting Essentials Suite is designed exactly for this. It is a purpose-built solution that removes the implementation complexity, letting you get structured sustainability reporting off the ground without large IT projects or specialist teams. 

What sets Easy Start apart is its scalability. It is built to grow with your business, whether that means expanding your sustainability scope over time, crossing CSRD thresholds, or adding coverage for other regulatory areas.  

The logic is simple: start where you are, build something that works, and make sure it can carry you further when the time comes. That is exactly what VSME is designed to enable, and exactly what osapiens EASY START is built to deliver. 

To see EASY START in action, join our upcoming webinar Mastering VSME: Simple Sustainability Reporting for Small and Medium-Sized Enterprises and learn how SMEs are putting VSME into practice.