The core aim is to offer a proportional and accessible framework that reflects the reality of limited resources, varying levels of ESG maturity, and rising external expectations.Rather than pushing SMEs into complex CSRD structures prematurely, VSME allows them to build ESG capabilities at their own pace, strengthen stakeholder relationships, and demonstrate transparency on material sustainability topics. It acts as a stepping stone toward structured ESG management and, where needed, future compliance with CSRD or other regulations.

The VSME standard is intended for non-listed small and medium-sized enterprises that are currently outside the scope of mandatory sustainability reporting under the CSRD. However, these companies are increasingly being asked by banks, clients, investors, or large supply chain partners to share ESG-related data — even without legal obligations.The VSME framework is cross-sectoral and applies broadly to SMEs across all industries, from manufacturing and logistics to consulting and retail. Importantly, it comes in two versions:
The Basic version includes a small set of high-level disclosures suitable for very small or early-stage companies.The Comprehensive version expands the scope for more mature SMEs that are ready to communicate broader ESG performance.
This modular structure ensures that companies can start small and scale up as needed.

At the heart of the VSME framework is the principle of proportionality: reporting should be meaningful, but not burdensome. The standard is modular, allowing companies to address relevant topics without having to comply with unnecessary detail. One of its key features is the “if applicable” principle, which gives companies the flexibility to omit certain disclosures — as long as they explain why. This reduces pressure and helps avoid greenwashing.
The methodology covers all major ESG pillars — environmental, social, and governance — and includes both qualitative and quantitative indicators. Templates, examples, and guiding questions support SMEs through the process. The standard also emphasizes forward-looking information, encouraging companies to reflect on their sustainability ambitions, not just past performance.

The VSME standard is not just about compliance — it’s about building strategic ESG capabilities in the SME sector. By adopting the standard, companies can:
Demonstrate ESG credibility to clients and financial institutionsImprove access to supply chain partnerships and fundingBuild internal awareness of sustainability risks and opportunitiesLay the foundation for structured ESG processes that can grow with the company
Moreover, VSME acts as an important signal to stakeholders that an SME takes sustainability seriously — without being overwhelmed by regulatory reporting obligations. It strengthens positioning in procurement, financing, and employer branding, especially in sectors where sustainability expectations are rapidly increasing.

Though voluntary, the VSME standard encourages companies to follow certain best practices to ensure relevance, clarity, and comparability of the information disclosed:
Disclose a core set of ESG indicators tailored to SME operationsApply the 'if applicable' principle transparently and document reasons for omissionsUse clear, concise narrative and data where availableLink disclosures to business strategy and stakeholder expectationsEnsure traceability of data sources, assumptions, and methodologiesUpdate information periodically to reflect progress and changes
The standard is designed to work as a living document — enabling SMEs to evolve their sustainability story over time without unnecessary reporting overhead.