Sustainability reporting: why the VSME standards will help your company move forward
February 2025 - The VSME standard, a new voluntary framework for sustainability reporting, will be officially launched in 2025. This tool is specifically designed to support SMEs in reporting their sustainability efforts.
What is the VSME and who is it for?
The Voluntary Sustainability Reporting Standard for SMEs (VSME) specifically targets micro, small and medium-sized enterprises (SMEs). The initiative provides a structured and user-friendly framework for companies to map their sustainable practices.
Your company belongs to the VSME's target group if you:
Turnover of less than 50 million euros.
Have a balance sheet total under 25 million euros.
Have fewer than 250 employees.
Sustainability disclosures: no longer optional for SMEs
Although the European Sustainability Reporting Directive (CSRD) officially only requires large companies to prepare reports, SMEs are also indirectly affected. Indeed, large companies have to collect information on the sustainability performance of their suppliers and partners in the value chain.
What does the value chain entail?
The value chain includes all the links before and after a company, such as suppliers, distributors and customers. Consider, for example:
The emissions during production from your suppliers.
The impact of transporters delivering your products.
An example is a supermarket chain that has to register not only its own emissions, but also those of transport companies and suppliers (scope 3 emissions). Without the cooperation of SMEs, large companies cannot complete their reports.
What will change with the transposition of the CSRD in Belgium?
In November 2024, the CSRD was transposed into Belgian law. This brings some practical implications for SMEs:
Limited disclosure obligations: large companies may only request information that falls within the standardised VSME modules.
Standardised reporting: the VSME offers 11 basic modules and 7 optional extensions that serve as guidelines.
Why choose the VSME?
The VSME standards have been developed with a focus on simplicity and usability. The complex principle of double materiality, which applies to large companies, has been omitted. This makes reporting more tailored to the needs of SMEs.
The benefits at a glance:
User-friendly: you only report what is really relevant, without unnecessary red tape.
Practically applicable: the guidelines are closely aligned with the daily operations of SMEs and expectations in the value chain.
Competitive advantage: a well-structured report allows you to respond proactively to the demands of your partners and customers.
How does the VSME strengthen your business?
By using the VSME standards, you demonstrate that sustainability is part of your strategy. This not only offers environmental benefits, but also strengthens your business position. Some concrete benefits:
Efficiency: you keep control over your processes without a heavy administrative burden.
Better cooperation: large companies count on your input to achieve their sustainability goals.
New opportunities: by demonstrating your sustainability efforts, you can stand out in the market and attract new partners.
Think ahead
The VSME standards are more than a reporting tool. They help you future-proof your business and be prepared for changing market expectations. By providing transparency about your impact, you not only enhance your reputation but also build stronger relationships with customers and suppliers.
With the VSME, you show that your company not only creates economic value, but also actively contributes to a sustainable future. This makes your company more attractive to trading partners who value sustainability.
