Sustainability is becoming increasingly important in corporate management, particularly in the wake of new regulatory requirements at European level. For large companies that are already covered by the CSR Directive Implementation Act (CSR-RUG), reporting on sustainability issues is mandatory. However, small and medium-sized enterprises (SMEs) are also focusing on voluntary sustainability reporting. The EU’s new voluntary standard, the VSME (Voluntary Sustainability Reporting Standard for Micro, Small, and Medium Enterprises), now offers SMEs a clearly structured opportunity to get involved in sustainability reporting.
What is the VSME standard?
The VSME is a voluntary reporting standard developed specifically for micro, small and medium-sized enterprises that are not subject to the mandatory regulations of the Corporate Sustainability Reporting Directive (CSRD). The aim of the standard is to create a framework that enables these companies to report on their sustainability activities in a practicable manner. The VSME standard is intended to help provide sustainability information for lenders, investors and business partners and to make the company’s contribution to a sustainable economy visible.
Structure and modules of the VSME standard (sustainability)
The VSME standard has a modular structure and comprises various reporting requirements tailored to the size and structure of the company:
- Basic module: Here, all reporting companies must provide basic information on areas such as energy consumption, greenhouse gas emissions, water consumption and governance. This module is the same for all companies, although certain information can be omitted if it does not apply to the company in question.
- PAT module (Policies, Actions, Targets): This module is aimed at companies that have already developed and implemented strategies and targets in the area of sustainability. Reporting in this module is based on a materiality analysis that identifies the company’s key sustainability issues.
- BP module (Business Partners): This module is intended for companies that want to pass on sustainability information to financial stakeholders and business partners. Here too, reporting is based on the materiality analysis.
Materiality analysis: the key to effective reporting
A central element of the VSME standard is the materiality analysis. This analysis helps companies to identify the issues that are material from both an environmental and social impact and a financial perspective. The focus here is on dual materiality – i.e. the consideration of both the company’s impact on the environment and the financial impact of sustainability aspects on the company.
The added value for SMEs
The VSME standard offers numerous advantages for small and medium-sized enterprises. Structured reporting in accordance with this standard enables SMEs to present their sustainability performance in a transparent and comprehensible manner. This creates trust among investors, lenders and business partners and can increase the company’s competitiveness. The VSME standard also provides valuable guidance for systematically integrating sustainability issues into the corporate strategy.
Sustainability: Conclusion
The VSME standard is an important step towards more comprehensive and transparent sustainability reporting, even for smaller companies. Thanks to its practical and flexible design, it offers SMEs the opportunity to actively participate in sustainable management and strengthen their position in the market. The Experts Institute recommends that companies familiarize themselves with the requirements of the VSME standard at an early stage and take advantage of the opportunities offered by voluntary sustainability reporting.
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