VSME – Customized Sustainability Report

The EU's Omnibus project is progressing, and we already know that the sustainability reporting requirement in accordance with the CSRD will only be mandatory for large companies. Thus, the situation is confusing for those companies that will no longer have the mandatory reporting obligation.

Most of the more than 1,200 companies originally covered by the Act had already prepared for reporting by analyzing double materiality and starting data collection. Of course, the EU’s erratic regulation hinders these companies, but easing the sustainability reporting obligation is certainly the desired outcome, as in the first version of the CSRD, idealism overrode reality. The reporting requirement was completely excessive.

Now is the time to think about what kind of reporting serves the company that removes the legal obligation. There are many options, and the good news is that now you can implement reporting according to your own needs. The EU’s Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) is a suitable framework for reporting. It was originally created to meet the needs of SMEs, and thanks to its reasonable data requirements, VSME provides a good framework for starting to report. Additionally, the basic level can be supplemented with information tailored to the company’s specific needs. Thus, in VSME, the report can be tailored to meet the information needs of stakeholders.

The difference with CSRD reporting is clear, although the renewed ESRS standard will also rationalize the reporting obligations of large companies. The VSME does not require verification and does not need to be published as part of the Board of Directors’ annual report, so visual presentations can be used to enhance the readability of the content. The time and costs needed to produce a report are clearly lower, but the potential attention value is greater. An attractive opportunity that is worth seizing.

If you would like to discuss VSME reporting, please do not hesitate to contact us. We have strong experience in double materiality analyses and reporting in accordance with the CSRD, as well as in voluntary sustainability reporting.