The VSME Standard
The Voluntary SME Sustainability Reporting Standard (VSME) is a simplified framework for Environmental, Social and Governance (ESG) reporting developed by the European Commission to help small and medium-sized enterprises (SMEs) disclose key sustainability information. Designed with flexibility and accessibility in mind, the VSME standard helps SMEs meet growing expectations from banks, investors, customers, and larger companies in their value chains without the complexity of full-scale corporate reporting requirements.
Despite its voluntary nature, VSME is rapidly becoming the de facto framework for SMEs to report on ESG issue.
The VSME Standard has two modules that organisations can use to prepare their sustainability report: Basic and Comprehensive
Basic: Company information + baseline environmental, social, and governance metrics (energy, emissions, water, waste, workforce, health & safety, anti-corruption)
Comprehensive: Basic + Scope 3 overview + additional strategic narrative, climate, workforce, human rights, and governance disclosures
View full requirements here
What Does It Provide for Companies?
The VSME standard gives SMEs a simple and structured way to report on relevant sustainability data requests including relevant Environmental, Social and Governance issues. It supports:
Improvement in sustainability management:The VSME standard provides SMEs with the foundational framework to gain the insights to better handle environmental and social challenges in the short, medium, and long term.
Guidance on ESG disclosures: Clearer and simpler methodology adapted to the needs and resources of SMEs with limited ESG knowledge.
Response to Data Requests: Enables SMEs to provide reliable sustainability data to larger companies that are subject to mandatory ESG reporting requirements.
Access to finance: The simple and standardised framework to report on ESG issues offer clarity and transparency for banks and investors to support funding opportunities. This creates better opportunities for SMEs to obtain green financing – facilitating the transition to a sustainable economy.
How Klappir helps you start reporting on the VSME Standard
Klappir makes it easy for SMEs to take the first step into ESG reporting. We have easy-to-use built-in tools and reporting templates available under Accounting for you to prepare your the Basic and Comprehensive VSME reporting before finalising and locking your data in Statement.
Choose VSME Basic if:
You are new to sustainability tracking.
You want to set a benchmark reporting for your company to build on later
Your clients or bank only ask for basic energy, safety, and worker numbers.
You have limited time and resources to spend on data collection and validation.
Head to Reports > Accounting >Type (VSME Basic) > Set the remaining reporting parameters > select "Apply"
Choose VSME Comprehensive if:
A major business partner or bank explicitly asks for transition plans or Scope 3 data.
Consider tackling ESRS and want to start building a strong foundation now
You already track reduction targets and formal social policies.
You want to show clear leadership in your market sector
Head to Reports > Accounting >Type (VSME Comprehensive) > Set the remaining reporting parameters > select "Apply"
Tip: You can review the VSME reporting requirements before generating a report in two main ways:
Check the VSME reporting templates (Type) in Reports > Accounting. Each template shows the structure and data points required for that report. Reviewing the template helps you understand what information you need to gather.
Use Data > Data coverage to identify missing or incomplete data before reporting. This helps you quickly see gaps and confirm that all required activities and metrics are available.
When you later create a Statement, you can also review the selected template, fiscal periods, and other parameters before generating the final report