VSME Basic vs. Comprehensive: choosing the right ESG reporting framework

Last updated: March 13, 2025

The Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) offers a flexible framework for businesses aiming to communicate their Environmental, Social, and Governance (ESG) performance. It comprises two primary modules: the Basic Module and the Comprehensive Module, each tailored to different levels of reporting depth and stakeholder requirements.

Basic Module: The foundation

The Basic Module serves as the entry point for ESG reporting under the VSME standard. It focuses on essential sustainability metrics, providing a streamlined approach suitable for companies new to ESG reporting or those seeking a manageable framework. Key disclosures include:

  • Environmental: Energy consumption and greenhouse gas (GHG) emissions (Scope 1 and Scope 2).

  • Social: Workforce composition, employee wages, and anti-corruption compliance.

  • Governance: Anti-corruption and compliance measures

This module is ideal for businesses aiming to meet basic stakeholder expectations without delving into extensive reporting requirements. For more details, go to our academy article.

Comprehensive Module: An in-depth approach

Building upon the Basic Module, the Comprehensive Module offers a more detailed ESG reporting framework. It is designed for companies seeking to provide enhanced transparency to banks, investors, and business partners. In addition to the disclosures in the Basic Module, the Comprehensive Module includes:

  • Business strategy and risk management: Insights into how sustainability is integrated into the company's overall strategy and risk assessment.

  • Climate transition plans: GHG reduction targets, including Scope 3 emissions for businesses with complex supply chains, and strategies for climate adaptation.

  • Social and human rights policies: Comprehensive information on policies related to social impact and human rights considerations.

  • Sector-specific ESG considerations: Tailored disclosures relevant to the company's industry sector.

This module is suitable for businesses aiming to provide a comprehensive view of their ESG initiatives and performance. For more details, go to our academy article.

Choosing between the modules

The selection between the Basic and Comprehensive Modules depends on a company's reporting objectives and stakeholder expectations. While the Basic Module offers a streamlined approach, the Comprehensive Module provides a more detailed and investor-ready ESG report. Importantly, completion of the Basic Module is a prerequisite for the Comprehensive Module, ensuring a structured progression in ESG reporting.