When a bank or a large customer asks a small company for sustainability data, the honest question is: how much detail is reasonable to expect from a firm with fifty staff and no sustainability department? VSME is the answer EFRAG designed. It is a voluntary standard sized for SMEs, so you disclose what genuinely applies to a smaller business and nothing more.
What VSME covers
VSME has two layers. The Basic Module is the core set of disclosures most SMEs will use. A Comprehensive Module adds further datapoints for companies that want to go deeper or that face more demanding requests. For the typical bank questionnaire, the Basic Module is what matters.
The Basic Module runs from B1 to B11 and touches your company profile, sustainability practices, energy and emissions, pollution, biodiversity, water, waste, workforce numbers, health and safety, pay and training, and any corruption or bribery convictions.
Why it is voluntary but useful
VSME is not a law you are forced to follow. It is a shared shape that both sides recognise. When you report in VSME format, the bank knows what it is looking at, and you have a single report you can reuse for every request instead of answering a different spreadsheet each time.
Where the standard is heading
VSME started as an EFRAG voluntary standard. The direction of travel is toward formal recognition, with a delegated act expected in 2026 to give it a firmer footing. That does not change what you disclose today, but it does mean VSME is becoming the settled answer to SME sustainability requests rather than one option among many.
Doing it without the spreadsheet pain
EFRAG publishes a free VSME template as a spreadsheet. It works, but a blank grid of cells does not tell you what each field means or what you have missed. A guided flow over the same Basic Module, with a plain explanation per field and a gap list at the end, gets you a report you can actually send.
Common questions
Is VSME mandatory?
No. VSME is a voluntary standard. What is effectively required is answering the requests you get from banks and customers, and VSME is the recognised shape for that answer.
What is the difference between the Basic and Comprehensive Module?
The Basic Module (B1 to B11) is the core set most SMEs use. The Comprehensive Module adds further datapoints for firms that want or need to disclose more.
Produce a VSME report the fast way
Answer a guided flow over the VSME Basic Module and get a clean report plus a gap list. First report free.
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