The new VSME standard is under development and will be finalized in early 2025. This voluntary framework offers SMEs a practical and accessible way to prepare sustainability reports. But why is this relevant to your business?
What is the VSME and who is it for?
The VSME (Voluntary Sustainability Reporting Standard for SMEs) is specifically designed for:
- Microenterprises
- Small businesses
- Medium-sized companies
Your business falls within the VSME's target audience if you:
- Less than 50 million euro turnover have.
- Less than 25 million euro balance sheet total have.
- Less than 250 employees have.
Why SMEs will also need to share sustainability information
Although sustainability reporting is primarily mandatory for large corporations through the CSRD legislation, SMEs will inevitably be involved as well. Indeed, large companies need data from their trading partners to meet their sustainability goals, especially along the value chain.
What is the value chain?
The value chain includes all activities before (suppliers) and after (distributors and customers) the own company. Consider, for example, emissions from:
- Producers during production.
- Transport companies during the delivery of goods.
Example:
For its sustainability report, a supermarket must map not only its own emissions but also those of its suppliers and transporters (called scope 3 emissions). Trading partners such as manufacturers and transportation companies will therefore be asked to provide relevant sustainability information.
What does the transposition of CSRD legislation mean for SMEs?
The transposition of the European CSRD legislation to Belgian legislation was completed at the end of November 2024. This brings some important changes:
- Limitation of requested information: Large corporations may request only the information that falls within VSME standards.
- Fixed standards: The VSME includes 11 basic modules and 7 extended modules, which provide the basis for all requested sustainability information.
Why report according to VSME standards?
The VSME was recently updated to make it simpler and more relevant to SMEs.
Key Benefits:
- Simpler reporting: The complex concept of double materiality (mandatory for large companies) has been removed. The focus is now on the most relevant information for trading partners.
- Practical applicability: The standards are aligned with what really matters to the value chain.
- Proactively respond to inquiries: By reporting according to the VSME, you create a solid basis for meeting the sustainability expectations of trading partners.
Why important for your business?
VSME standards allow you to:
- Integrating sustainability in your operation without a heavy administrative burden.
- Collaborating with large companies who depend on your input for their own reports.
- Taking advantage of opportunities: Proactively responding to sustainability questions can strengthen your position in the value chain.
Conclusion
The VSME Standards offer SMEs an accessible and efficient way to meet the growing demand for sustainability reporting. They make it easier to document sustainable actions while remaining relevant to trading partners along the value chain.
Think ahead and prepare. Having a sustainability report according to the VSME not only shows your commitment to sustainability, but also strengthens your business relationships and competitiveness.
