The VSME’s structure and scope follow the European Sustainability Reporting Standards (ESRS) approach. This allows you to develop competencies, collect relevant data and implement the correct reporting processes.
However, the VSME and ESRS differ in scope, mandatory scope and level of detail because of their differing objectives and target audience.
Mandatory scope and coverage
The ESRS is mandatory for large organizations and some medium-sized listed companies, as dictated by the CSRD. The VSME is voluntary and for non-listed micro and SMEs that wish to report on sustainability more simply.
Scope and detail
The ESRS encompasses numerous topics, such as climate change, social issues and governance. The VSME focuses on key ESG aspects, its basic module requires less data and its comprehensive module is additional, meaning it is more accessible to SMEs.
Double materiality analysis
The ESRS involves a double materiality assessment. The VSME does not include such an assessment, but rather an “if applicable” approach, meaning your company can exclude certain disclosures if they are not material.
Structure and flexibility
The ESRS has a complex structure, with thematic and cross-cutting standards that usually require more resources and knowledge. The VSME only has basic and comprehensive modules, allowing you more flexibility.