What is the VSME?

The Voluntary Sustainability Reporting Standard for SMEs (VSME) is a simplified ESG reporting framework designed for small and medium-sized enterprises (SMEs). It allows companies to communicate their sustainability efforts without the complexity of full CSRD compliance.

Unlike traditional frameworks created for large corporations, VSME reflects the operational realities of SMEs. It helps businesses manage sustainability performance, respond to stakeholder requests, and improve access to green financing - all while staying proportional to company size and resources.

The VSME standard was developed by EFRAG and is especially relevant in the context of the EU’s 2025 Omnibus Proposal, which excludes many SMEs from mandatory reporting. As a result, VSME is emerging as the go-to framework for SMEs and midmarket firms who want to remain ESG-relevant without regulatory pressure.