Mandatory or optional? Why voluntary ESG reporting according to the “VSME standard” is worthwhile for SMEs
CSRD reporting obligation eased – sustainability communication remains important
Companies in Europe have a lot to look forward to in the coming years. The European Union’s Corporate Sustainability Reporting Directive (CSRD) obliges many companies to prepare a sustainability report in accordance with the three ESG criteria of environmental, social and governance.
The aim of this EU measure is to create more transparency and better comparability of the respective sustainability activities. Previously, every company was able to design and decorate its sustainability report as it wished, but the new directive creates a new uniformity.
2025 was originally the year in which the obligation to prepare sustainability reports was to come into force for many companies. However, the EU Commission’s “omnibus” reform will relax the Corporate Sustainability Reporting Directive (CSRD):
- The threshold for the reporting obligation increases from 250 to 1,000 employees.
- This means that many medium-sized companies are no longer obliged to do so.
- The requirements for large companies will be simplified – but they will remain subject to reporting obligations and will continue to request sustainability data from their suppliers.
Sustainability is demanded in the business world: Start preparing your sustainability report now!
Even if fewer companies are legally obliged to report, the topic of sustainability remains present. This is because large companies, banks and investors continue to demand transparent sustainability data – especially from SMEs in the supply chain.
Companies that are prepared here have clear advantages:
You meet the requirements of major business partners at an early stage.
You are attractive to banks and investors.
You can use sustainability as a real competitive advantage.
While a greenhouse gas or CO2 balance can almost be described as standard today, comprehensive ESG reporting is still more of a “freebie” for most companies. However, SMEs in particular should not rest on their laurels for too long – because it is already a reality that clients require their suppliers to have an EcoVadis Silver Status rating, for example, as a minimum requirement for cooperation.
The VSME: The smart standard for companies not subject to CSRD
VSME (Voluntary Sustainability Module for Enterprises) was developed to offer SMEs a compact, practical and yet meaningful option for sustainability reporting. It is based on the fundamental principles of the European reporting standards, but reduces complexity and offers a tailor-made, lean solution for smaller companies:
- Compact sustainability report especially for SMEs.
- EU-wide recognized standard based on the European Sustainability Reporting Standards (ESRS).
- Modular structure: A basic module with the most important ESG data plus an optional extended module.
For which companies is the VSME particularly relevant?
- SMEs that act as suppliers to large companies.
- Companies that wish to voluntarily document their sustainability performance.
- Formerly CSRD-liable companies that wish to continue to prepare a structured report.
Why voluntarily report on sustainability?
- Reliably answer inquiries about sustainability data from major customers and banks
- Recognize risks at an early stage and manage them in a targeted manner
- Organize sustainability measures sensibly and implement them efficiently
- Making your own progress transparent and strengthening trust
- Positioning the company for long-term success and a secure future
CSRD and VSME – what does this mean for SMEs?
With the “omnibus” reform, 80% fewer companies will be required to report. However, sustainability requirements remain – especially from the major players in the market. Those who address the issue at an early stage remain capable of acting and can use sustainability strategically.
The EU Commission will recognize the VSME as an official standard, making it the de facto standard for all non-reporting companies.
Our tip: Create your first voluntary sustainability report. This will give you initial experience with the concept and the processes. This will give you the ideal basis for efficiently ensuring that your reporting meets all legal requirements in the future.
Just columns of figures, or also helpful messages and genuine transparency?
While the introduction of CSRD gives us deeper insights into companies’ sustainability efforts, true transparency requires more than just compliance.
Our agency is committed to communication that goes beyond numbers and is based on clarity, honesty and openness: Clear, universally understandable messages, an honest dialog free of greenwashing and an open discussion about challenges as well as opportunities for improvement are key.
Although CSRD guidelines improve access to sustainability-related information, it is crucial that this information is understandable not only to experts, but to everyone. Sustainability concerns us all. Therefore, it is important that companies of all sizes share their authentic sustainability journey, openly report on their progress and challenges and thus contribute to real change.
Change does not happen overnight, but every honest contribution counts on our common path to a more sustainable future.
Why choose Kaeding Anderson as your partner for sustainability communication?
Sustainability is more than just a trend – it is a key future strategy for companies. We help you to take the appropriate measures and communicate them professionally.
Our services:
- Sustainability strategy & stocktaking – Where does your company stand and where should it go?
- CO₂ balancing & climate strategy – Basis for well-founded sustainability measures.
- Preparation of sustainability reports – According to CSRD or VSME, compact and practical.
- Communication strategies & marketing – Making your commitment to sustainability visible and understandable.
Feel free to contact us: We will provide you with an initial overview, remain at your side and will be happy to advise you.
