VSME: Voluntary Sustainability Reporting Standard for SMEs

The VSME gives non-listed companies outside mandatory CSRD scope a modular framework for disclosing sustainability data to customers, banks, and financial institutions.

Next deadline:

No fixed date: the VSME standard is available for adoption now. Data requests from CSRD-reporting customers and financial institutions are active across supply chains. Companies that want to respond with a consistent, capped dataset should have their VSME reporting framework in place before those requests arrive.

The value-chain cap is already in force under the Omnibus I Directive: CSRD-reporting companies may not request sustainability information from companies with fewer than 1,000 employees beyond what the VSME standard covers. The VSME Delegated Act, published in draft on 6 May 2026, formalises the cap as a binding regulation. Final adoption is expected in Q3 2026.

Companies with a complete VSME dataset in place before that date will have a documented, standardized basis for limiting incoming requests from the moment the Delegated Act takes effect.

VSME Timeline

September, 2023

European Commission publishes the SME Relief Package. Action 14 mandates EFRAG to develop a simple, standardized voluntary reporting standard for non-listed SMEs.

October–November 2024

VSME approved by EFRAG’s Sustainability Reporting Technical Expert Group (SR TEG) on October 22, 2024, and by the Sustainability Reporting Board (SRB) on November 13, 2024.

February 26, 2025

European Commission proposes the Omnibus I simplification package, planning that companies with fewer than 1,000 employees fall outside mandatory CSRD scope and may report using a voluntary standard based on VSME.

March 18, 2026

Omnibus I Directive (EU 2026/470) enters into force. CSRD scope formally narrows to companies with more than 1,000 employees.

January 21, 2024

EFRAG publishes the VSME Exposure Draft for public consultation. Consultation closes May 21, 2024.

December 17, 2024

EFRAG delivers the final VSME standard to the European Commission. The standard is available for voluntary adoption from this date.

July 30, 2025

European Commission endorses VSME via Recommendation (EU) 2025/1710. CSRD-reporting companies are encouraged to limit supply chain data requests to VSME scope.

Mid-2026

European Commission adopts the VSME Delegated Act. Value-chain cap becomes legally binding: CSRD-reporting companies may not request sustainability data from companies with fewer than 1,000 employees beyond VSME scope.

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  • 2023
    September, 2023

    European Commission publishes the SME Relief Package. Action 14 mandates EFRAG to develop a simple, standardized voluntary reporting standard for non-listed SMEs.

  • 2024
    January 21, 2024

    EFRAG publishes the VSME Exposure Draft for public consultation. Consultation closes May 21, 2024.

  • October–November 2024

    VSME approved by EFRAG’s Sustainability Reporting Technical Expert Group (SR TEG) on October 22, 2024, and by the Sustainability Reporting Board (SRB) on November 13, 2024.

  • December 17, 2024

    EFRAG delivers the final VSME standard to the European Commission. The standard is available for voluntary adoption from this date.

  • 2025
    February 26, 2025

    European Commission proposes the Omnibus I simplification package, planning that companies with fewer than 1,000 employees fall outside mandatory CSRD scope and may report using a voluntary standard based on VSME.

  • July 30, 2025

    European Commission endorses VSME via Recommendation (EU) 2025/1710. CSRD-reporting companies are encouraged to limit supply chain data requests to VSME scope.

  • 2026
    March 18, 2026

    Omnibus I Directive (EU 2026/470) enters into force. CSRD scope formally narrows to companies with more than 1,000 employees.

  • Mid-2026

    European Commission adopts the VSME Delegated Act. Value-chain cap becomes legally binding: CSRD-reporting companies may not request sustainability data from companies with fewer than 1,000 employees beyond VSME scope.

What VSME requires

Under the Omnibus I Directive, companies with fewer than 1,000 employees and under €450 million in net turnover fall outside mandatory CSRD scope and may report voluntarily using VSME.

The framework has two modules. The Basic Module covers 11 disclosure areas including GHG emissions (Scope 1 and 2), energy use, water, workforce conditions, and anti-corruption. 

The Comprehensive Module adds 9 further disclosure areas covering climate targets, biodiversity, and human rights due diligence in the value chain.

No Double Materiality Assessment is required. Disclosures apply on an "if applicable" basis, and there is no external audit obligation.

Common VSME implementation challenges

Inconsistent, overlapping data requests from the supply chain

Companies not subject to CSRD receive separate questionnaires from multiple customers, each formatted differently and covering overlapping but inconsistent data sets. Each request generates a separate response, producing disclosures that vary across the same reporting period.

No established sustainability data infrastructure

GHG emissions, workforce metrics, and governance indicators typically sit in separate systems or spreadsheets with no shared collection process. A repeatable reporting workflow requires defined ownership across business functions and a single data layer to draw from.

No materiality process means scope remains a judgment call

VSME replaced the mandatory Double Materiality Assessment with an "if applicable" principle: disclosures are reported only when relevant to the company's circumstances. Underestimating scope produces incomplete disclosures that customers and banks will challenge; overestimating scope creates unnecessary reporting burden.

Each stakeholder requests sustainability data in a different format

A structured VSME dataset resolves format inconsistency only if the underlying data is collected centrally, not assembled per request. Data collected into individual documents per stakeholder produces the same duplication problem regardless of which standard is in use.

VSME reporting built on one shared data layer

The osapiens HUB covers all 20 VSME disclosures through the Reporting Cockpit. GHG data collected for VSME directly feeds corporate carbon and product carbon calculations on the same platform.

Cover all 20 VSME disclosures with pre-mapped templates

The osapiens HUB Reporting Cockpit provides pre-built templates for all 20 VSME disclosures across both modules, with the "if applicable" logic built in. Completed disclosures export in PDF and XBRL-ready format for customers and financial institutions.

ADDITIONAL VSME RESOURCES

 

Frequently Asked Questions (FAQ)

 

Answer every incoming data request from one disclosure record

Collect sustainability data once and meet every future request without additional effort.

One HUB. Every sustainability signal.