VS – Sustainability Reporting for SMEs
The VS standard – currently still known as the VSME standard – serves as a guideline for sustainability reporting for companies with up to 1,000 employees
VS –
A standard for small and medium-sized enterprises (SMEs)
The new Voluntary Standard (VS), presented by the European Commission in July 2026, is a further development of the previous VS (Voluntary Standard for non-listed SMEs). The VS builds on the VSME and provides a structured framework for voluntary sustainability reporting for SMEs with up to 1,000 employees. Like the VSME before it, the VS also follows a modular structure comprising a Basic Module and a Comprehensive Module. The Voluntary Standard (VS) thus creates a uniform basis for sustainability information throughout the value chain, including a statutory ‘value chain cap’ (an upper limit on the scope of information that may be requested).
The CSRD has made sustainability reporting more binding. At the same time, through Omnibus I, the EU has significantly reduced the number of companies subject to reporting requirements. Many companies that would originally have been subject to the CSRD reporting requirements are no longer required to report due to the increase in the thresholds. Investors, banks, customers, major business partners and the public sector will continue to request ESG information for credit decisions, tenders, supplier assessments, their own CSRD reports or risk management.
The structure of a VS report
The VS Standard (Voluntary Sustainability Reporting Standard for non-listed SMEs) has a multi-level structure and covers various ESG topics. A double materiality analysis (DMA) is not mandatory, but recommended.
The VS combines two modules that build on each other: the Basic Module (B) and the Comprehensive Module (C).
The Basic Module is the entry level and includes minimum information on:
- Environment (GHG emissions, energy consumption and resource consumption)
- Social issues (health and safety, working conditions)
- Ethics (Compliance, etc.)
The Comprehensive Module has been expanded and is aimed at SMEs that wish to publish additional requirements and information. This additional information is often requested by the supply chain, lenders or investors. The module contains detailed disclosures on:
- Climate footprint and climate risks
- Climate strategy with CO2 reduction targets
- Social KPIs
- Human rights topics
The modular approach to bespoke sustainability reporting makes it easier for SMEs to decide which goals they want to achieve and how detailed their reporting should be. The basic module contains 11 items and serves as an introduction. The extended 'Comprehensive Module' contains a further nine items. The VSME is designed to make reporting as efficient and straightforward as possible.
Based on our practical experience and the current requirements for SMEs, we recommend using both modules.
Information on business practices, strategies and models can be provided in the form of a yes/no checklist, which includes a description of each practice, strategy or measure.
Reporting with carbon-connect
- Easy data collection: We will send you a file with the data points needed for the report.
- Structured implementation: Clear step-by-step instructions, easy to follow without training.
- Personal support: We are there for you and accompany you closely on your way to your sustainability report.
- No time to write the report? No problem, we can support you.
The VS standard provides small and medium-sized enterprises with an effective and practical solution, protecting them from being overwhelmed by inconsistent and excessive sustainability reporting requests from large customers, lenders and investors. Voluntary reporting demonstrates your proactive approach towards sustainability.
