How to create a VSME sustainability report for your SME

The business world is changing. What used to be optional, demonstrating your commitment to the environment, people, and ethical management, is quickly becoming a requirement.

Not just because of regulations coming from Europe, but also because clients, suppliers, financial institutions, and even employees want to know more:

What is your company doing for the planet? How does it treat people? Does it have a clear strategy for the future?

Until recently, small businesses were left out of this conversation. Sustainability seemed like a thing for large corporations. But that has changed.

Today, SMEs can, and should, communicate what they’re doing. And they can do it using a simple, accessible framework tailored to their needs: the VSME standard.

What is the VSME Standard?

VSME stands for Voluntary Sustainability Standard for Micro Enterprises and SMEs.

It’s a voluntary sustainability standard specifically designed for micro, small, and medium-sized enterprises.

It was developed by EFRAG, the European body responsible for defining how companies should report on sustainability, and it’s a simplified, adapted version of the CSRD framework.

The main difference? It’s not mandatory, and it’s not designed for large publicly traded companies.

The goal is to allow any SME, regardless of sector or size, to create a clear, proportional, and useful sustainability report.

The standard includes questions, indicators, and thematic blocks, but also leaves room for flexibility so each company can speak from its own reality.

Reporting as an SME? This sustainability software simplifies the VSME standard with minimal resources.

Why Should an SME Create a VSME Report?

There are many reasons an SME might consider creating its first VSME report:

• Access to green financing: Many banks and EU funds are starting to request ESG data, even from small businesses.
  
  
• Competitive advantage: If you bid for public contracts or work with large clients, you’ll be asked about your social and environmental impact.
  
  
• Reputation boost: Communicating your commitment strengthens your brand with both clients and employees.
  
  
• Preparation: Although VSME is voluntary, it’s a good first step if your sector becomes regulated in the future.
  
  
• Internal decision-making: Measuring and organizing information helps identify inefficiencies, risks, and areas for improvement.

The Case of Ejemplo Sostenible S.L.

To show how a VSME report can be structured, let’s follow the fictional case of Ejemplo Sostenible S.L., a textile company based in Spain.

With over a decade in operation and a solid team, they’ve decided to formalize and communicate their sustainability commitment.

Not because of legal obligations, but because they believe the time is right to take that step.

Conclusion

Sustainability is no longer a luxury. It’s a tool for competitiveness, talent attraction, differentiation, and long-term viability.

With the VSME framework, any SME can take that first step without overcomplicating things.

You don’t need to be a big company to make a big commitment.

You just need the will, some structure, and the courage to tell your story well.