Why VSME matters for your business

Recent proposals to relax the CSRD (Corporate Sustainability Reporting Directive) would exempt many mid-sized companies from mandatory sustainability reporting.

But what about SMEs? Should they still be thinking about ESG disclosures?

Research shows that sustainability is becoming increasingly relevant for SMEs. According to a study by Motivaction (on behalf of insurer a.s.r.), 64% of Dutch entrepreneurs now see sustainability as a necessity, not a choice. One in five SME owners say they are already impacted by CSRD, directly or indirectly, through customer or financier requests.

This growing pressure makes it clear that smaller businesses also need to be prepared to answer sustainability questions. VSME offers a professional but accessible way to meet these expectations without unnecessary complexity.

What is VSME, and why is it relevant for SMEs?

VSME (Voluntary Sustainability Reporting Standards for SMEs) is a reporting framework developed by EFRAG as a lighter alternative to CSRD. It’s designed for small and mid-sized companies that are not legally required to report under CSRD but still want to be transparent about their sustainability efforts.

Over 423,000 SMEs exist in the Netherlands alone. While most are not subject to mandatory reporting, customers, suppliers, and financial institutions are increasingly asking for ESG information. A VSME report helps respond to those requests clearly and in a structured manner.

Why should you consider VSME reporting?

Even without legal obligations, strategic reasons exist to consider VSME reporting. Here are a few:

• Meet supply chain demands - Many SMEs supply larger companies that do fall under CSRD. These clients will continue to request ESG information from their suppliers. VSME provides a simple, standardised way to meet those demands without extra complexity.
• Position your business as a responsible partner - Sustainability is becoming a key decision factor. Customers, governments and financiers increasingly favour companies that are transparent about their impact. A VSME report demonstrates commitment and credibility.
• Improve access to finance - Many banks and investors ask for sustainability data before providing funding. With a VSME report, you’ll have the right insights ready, helping strengthen your case for financing or investment.

How SMEs can use VSME to gain a strategic edge

Whether you’re just getting started with ESG or already taking steps, VSME can strengthen your market position in several ways:

1. Responding to customer demands

If your clients care about sustainability, they’ll likely ask for data. A VSME report lets you provide this without having to go through hoops.

2. Standing out in tenders and bids

Public and private tenders increasingly prioritise sustainability. A VSME report gives you a competitive advantage by showing that you’re actively addressing ESG.

3. Sharpening your strategy

A VSME report helps you reflect on your sustainability goals and progress. It makes your internal ambitions tangible and more straightforward to communicate to staff, clients or stakeholders.

4. Boosting your visibility and reputation

Transparent reporting, even when not required, shows leadership. It also builds trust with sustainability-minded customers, partners, and employees.

5. Staying ahead of competitors

Many SMEs are still figuring out where to start with sustainability. By using VSME proactively, you show initiative, which can be a factor in customer or partner decisions.

How much does VSME cost, and how do you get started?

One of the key benefits of VSME is its flexibility and voluntary nature. That means:

• No mandatory audits - unlike CSRD, you save costs on verification
• You choose the level of detail - keep it short and practical, or go deeper
• Standalone or integrated - use it as a separate ESG report, or add it to your annual report

If you already have insights into your energy use, carbon footprint or social impact, you’re halfway there. And with tools like our VSME Reporting Tool, it’s easy to compile a clear and compliant report, without unnecessary admin.

Why SMEs should act now

VSME may be voluntary, but it’s quickly becoming the new standard for ESG transparency in the SME sector. Businesses that embrace it now will be better positioned as responsible suppliers, resilient brands, and future-ready organisations.

In summary:

• SMEs may not be required to report, but stakeholders increasingly ask for ESG data
• VSME offers a standardised, low-effort way to share your sustainability efforts
• Early adopters gain a competitive edge and stay ahead of the curve

‍

Want to know how VSME could benefit your business? Let’s talk! Schedule a chat with us or discover how our VSME Reporting Tool can help you report quickly, clearly and confidently. Stay transparent. Stay ahead. Lead the change.