Voluntary Sustainability Reporting

Voluntary sustainability reporting is increasingly becoming a strategic business opportunity for companies across sectors. Even where entities are not subject to mandatory sustainability reporting requirements, ESG data requests from banks, investors, large corporate clients are becoming standard practice.

Why is voluntary sustainability reporting becoming more important?

The Voluntary Sustainability Reporting Standard for SMEs (VSME), developed by the European Financial Reporting Advisory Group (EFRAG), provides a simplified and proportionate ESG reporting framework for small and medium-sized enterprises.

Following the EU Omnibus package, the relevance of the VSME framework has significantly increased. Both EFRAG and the European Commission now encourage its use not only for SMEs but also for companies that fall outside the scope of the Corporate Sustainability Reporting Directive (CSRD).

In addition, under the expected Value Chain Cap regulation (anticipated by the end of June 2026), CSRD-reporting companies will be limited in the ESG information they can request from smaller business partners to the data points defined under the VSME framework.

As a result, the VSME is evolving from a voluntary reporting standard into a de facto market benchmark for SMEs and non-CSRD companies alike.

Benefits of voluntary sustainability reporting

Voluntary ESG reporting delivers tangible business value while aligning companies with evolving stakeholder expectations and market requirements.

• Competitive advantage: Increasingly, public tenders and large corporate procurement processes require ESG disclosures from suppliers and business partners.
• Stronger business relationships: Transparent sustainability reporting enhances credibility and strengthens trust with key stakeholders.
• Improved innovation and operational efficiency: Integrating sustainability considerations into business processes can drive innovation, improve efficiency, and support employee engagement and well-being.
• Greater transparency and trust: Structured ESG reporting strengthens corporate reputation among customers, employees, and business partners.
• More efficient data management: Standardised ESG reporting reduces duplication and enables faster responses to ESG data requests from stakeholders.
• Enhanced access to finance: Structured ESG disclosures improve credibility with financial institutions, as ESG factors are increasingly integrated into lending and investment decisions. VSME-based reporting is also gaining recognition in European markets and external assessment frameworks such as EcoVadis.
• Long-term regulatory readiness: Voluntary reporting helps companies prepare for future regulatory developments and evolving market expectations.

Why choose a VSME-based sustainability report?

• Simple and proportionate:  Compared to full corporate sustainability reporting standards, the VSME framework requires fewer data points and significantly lower implementation effort.
• Flexible and modular: The standard consists of two modules (Basic and Comprehensive), allowing companies to adopt a phased approach aligned with their ESG maturity and available resources.
• Supports internal ESG development: The VSME framework helps establish structured ESG data collection and reporting processes while reducing internal fragmentation of information.
• Reduces ad hoc ESG reporting burden: A VSME-aligned approach simplifies responses to ESG questionnaires and data requests from customers, banks, and investors.