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6 Steps to use the VSME template and organize our ESG data

Updated on
October 13, 2025

These are the 6 steps to correctly use the VSME template:

  1. Download or access the official VSME template
  2. Identify the key ESG information categories
  3. Gather your relevant internal and external data
  4. Fill in the template fields with your consolidated data
  5. Verify the consistency and quality of the information
  6. Use the template to generate your sustainability and compliance reports

The VSME template is today one of the simplest and most effective ways for SMEs to report their ESG information without complex processes or advanced technical knowledge.

This voluntary model, developed by EFRAG, provides companies with a clear, proportionate, and recognized structure to communicate their environmental, social, and governance data.

Thanks to this standardized template, any company can organize and present its sustainability information in a consistent way, aligned with European requirements.

It is no longer about filling endless reports, but about transparently showing how the most relevant impacts are managed.

The goal is clear: to facilitate access to sustainable financing, build trust among clients and investors, and prepare for more demanding regulations such as CSRD or ESRS.

With the VSME template, SMEs gain a flexible framework that adapts to their reality and allows them to advance smoothly toward a more professional ESG management.

In the following sections, we will explain what the template includes, how it is used, and why it can become a real competitive advantage for any company that wants to take sustainability seriously.

How to Use the VSME Template in 6 Steps

The VSME template is designed so that any company, no matter how small, can report its ESG information in a clear, structured, and recognized manner at the European level.

It is not necessary to be an expert in reporting or spend weeks on the process. With an organized approach, we can have our data ready and validated in little time.

Below, we explain how to apply the template step by step to make the most of it within your ESG strategy.

1. Download or Access the Official VSME Template

The first step is to access the official version of the standard published by EFRAG. There, you can choose between the basic module or the full module, depending on the level of detail needed.

The basic module covers the minimum requirements and is sufficient for most SMEs that want to start reporting without complications.

The full module is designed for those who must respond to more specific requests from clients, banks, or investors.

Before starting, it is important to define the scope of the information to be included.

If we do this from the beginning, we avoid duplicating work and maintain data traceability.

2. Identify the Key ESG Information Categories

The next step is to understand what the template requires. The VSME organizes information into thematic blocks that cover the three ESG pillars:

Environmental: energy, greenhouse gas emissions (scopes 1 and 2), natural resources, water, and waste.

Social: workforce, training, safety, equality, and working conditions.

Governance: ethics policies, anti-corruption, and transparency.

At this stage, it is useful to map the information we already have (for example, energy consumption or payrolls) and detect which indicators we need to start measuring.

This phase saves us time and prevents inconsistencies between departments.

3. Gather Your Relevant Internal and External Data

Once we know what we need, we collect information from all areas: operations, finance, human resources, purchasing, logistics, or environment.

The objective is to centralize all data in a single repository, eliminating the typical scattered files.

Each area manager should provide the data with consistent units, periods, and formats, since even a minimal difference can alter the report results.

We can also include data from suppliers or external partners, especially if we want to reflect the full impact of the value chain.

4. Fill in the Template Fields with Your Consolidated Data

With the information consolidated, we begin to fill out the VSME template. At this stage, it is essential to document the sources, assumptions, and calculations used.

If a figure comes from estimations or an external report, we must record it clearly. This simplifies future updates and gives the report more solidity.

The advantage of the VSME model is that its structure is compatible with other reference frameworks, allowing us to reuse the same data in different contexts.

For example, the data entered in the template can be used for EINF, CSRD, EU Taxonomy, ISOs, or SBTi, avoiding duplication of work.

5. Verify the Consistency and Quality of the Information

Before finalizing the document, we perform a consistency and quality review. This includes verifying:

That the units and periods are consistent.
That the totals match across sections.
That data from previous years or different reports do not contradict each other.

If something does not fit, we review the data at its source. Correcting it here is much faster than doing it later, once the reports have been distributed.

Verification is not an audit, but it is a practice that ensures reliability and credibility before any stakeholder who consults our report.

6. Use the Template to Generate Your Sustainability and Compliance Reports

Once the template is completed, we can convert it into a sustainability or ESG compliance report ready to submit.

Its digital and structured format allows exporting in different file types (PDF, Excel, or XBRL), according to each recipient’s requirements.

From there, we start a continuous improvement process. Each year, we update the information, compare results, and set new objectives.

This allows us to demonstrate concrete progress and stay prepared for evolving regulatory requirements.

With this approach, we move from seeing reporting as an obligation to understanding it as a strategic management tool.

The VSME template is the first step to measure, compare, and act with reliable data. And in a market where more and more companies measure their impact, those who don’t will be left behind.

What the VSME Template Is and What It Is For

The VSME template is the format created by EFRAG so that non-listed SMEs can report their ESG information (environmental, social, and governance) in a structured, clear, and proportionate way.

Its main goal is to simplify sustainability reporting and reduce the administrative burden for companies that, although not required by the CSRD, must respond to the demands of clients, banks, or investors.

Unlike more complex standards, the VSME template allows each company to decide how far it wants to go.

It is organized into two levels: a basic module with 11 minimum disclosure requirements, and a complete module designed for those who need more detail or work with partners that require it.

In both cases, the idea is to make ESG reporting accessible without losing rigor.

In short, this template is a practical tool that helps organize, document, and communicate ESG information in a way that is recognized throughout the European Union.

Its use is not mandatory, but more and more companies are adopting it to remain competitive and gain trust in the market.

How It Integrates into a Company’s ESG Management

The VSME template fits naturally within any company’s ESG strategy. It allows us to collect all relevant data, structure it coherently, and reuse it for multiple purposes.

Instead of creating reports from scratch for each regulation or client, we can use a single ESG database that adapts to multiple frameworks.

This means that the information we collect with the VSME template can also be used for EINF, CSRD, EU Taxonomy, ISOs, or SBTi, without duplicating efforts.

In practice, it becomes a centralized source of information that makes it easier to manage, audit, and share sustainability progress both within and outside the company.

A Solid Foundation to Professionalize Sustainability

Starting to work with the VSME template is not only about compliance, but about professionalizing ESG management.

Having a clear structure forces us to organize data, review indicators, and set real improvement goals. It also helps teams from different areas speak the same language and collaborate under a common framework.

The VSME template is, ultimately, a tool to take control of ESG information.

And whoever controls their data controls their future, because measuring and reporting impact is no longer optional, but a condition to stay competitive in the market.

Why Use the VSME Template in Your ESG Strategy

The VSME template is much more than a reporting format. It is a tool that allows us to bring order to ESG information and build a solid foundation upon which to develop any sustainability strategy.

If we want to make informed decisions, we need reliable and comparable data. And that begins with a clear structure, like the one this standard provides.

Adopting the VSME template is the first step toward transforming scattered data into useful information. It helps us understand what we are measuring, why we measure it, and how we communicate it.

Instead of having separate reports by area or department, we move to having a single source of ESG information, accessible and reusable at any time.

The Template as a Starting Point to Structure Your Sustainability Data

When we use the VSME template, we gain a practical guide to collect and classify our company’s ESG data. It allows us to identify which information we already have and which we need to start measuring, such as energy use, waste, or Carbon Footprint.

This saves us time, reduces errors, and improves the traceability of every piece of data we include.

Moreover, working with a common structure helps us align indicators with major international frameworks without redesigning everything from scratch. In this way, each piece of data we collect can serve for different reports or certifications without duplicating effort.

Benefits of Using a Standardized Model for Your Reports

Using a standardized model such as VSME gives us consistency, credibility, and efficiency. It not only simplifies internal work, it also makes information easier to understand for recipients such as clients, investors, or financial institutions.

Thanks to its clear and recognized format, the template reduces misinterpretations and common errors in manual reports.

In addition, it enables comparisons over time, helps detect improvements, and demonstrates real progress in ESG management.

Standardization also has a practical effect. It allows us to integrate data directly into the technological platforms or management tools we use, avoiding repetitive processes and manual calculations that slow down work.

Relationship with Regulations and Reference Frameworks (CSRD, SBTi, Taxonomy, ISOs)

The VSME template does not exist in isolation. It is designed to connect with the major ESG reference frameworks that affect European companies.

Its structure makes it easy to reuse the same information to comply with the CSRD, the EU Taxonomy, SBTi, EINF, or ISO certifications.

This turns VSME into a common language between SMEs and large corporations, enabling them to respond to data requests without redoing reports or losing consistency.

Using the VSME template is choosing an intelligent and structured way to manage sustainability.

It prepares us for what’s coming, improves the quality of our data, and gives us a real advantage over those who have not yet started to measure their impact.

4 Practical Tips to Get the Most Out of the VSME Template

Using the VSME template is not just about filling boxes. It is about turning ESG data into a real management tool.

When used well, it helps us better understand performance, respond quickly to any information request, and improve the way sustainability is managed within the company.

Below, we share four practical tips to get the most out of it and make this template work in your favor.

1. Start with a Simple but Organized Approach

The most common mistake is trying to cover everything from the beginning. It’s better to start with the essential elements: the most relevant and easy-to-obtain data, such as energy, emissions, or number of employees.

Once we have that base, we can gradually expand to more complex indicators. The key is to build a clear structure, knowing where each data point comes from and how it is updated.

The VSME template is designed to grow with you, not to complicate your work.

2. Align Your Data with Different Frameworks and Regulations

The information collected with the VSME template can serve many other reports. If we structure our data properly, we can use it for EINF, CSRD, EU Taxonomy, ISOs, or SBTi without having to repeat tasks.

This is only possible if we maintain consistency across indicators, periods, and measurement units.

Having a single ESG database that feeds multiple formats not only saves time but also ensures coherence and reliability across all reports.

3. Update Information Regularly

ESG reporting is not something to do once a year and forget about. To have real value, data must be updated regularly and reviewed for deviations or improvements.

The VSME template thus becomes a living tool. Each update gives us an accurate snapshot of the company’s performance.

This enables us to anticipate problems, detect opportunities, and demonstrate progress with verified figures.

4. Digitize the Process and Avoid Depending on Spreadsheets

One of the biggest mistakes is continuing to manage ESG information in dispersed spreadsheets with no version control.

If we truly want efficiency, we need to automate data collection and analysis.

Taking full advantage of the VSME template is not about having more information but about managing better the information we already have.

If we structure, connect, and update data with criteria, sustainability stops being an isolated effort and becomes a real strategic lever for business growth.

Why Adopt Digital Tools for ESG Management

More and more companies are realizing that ESG management cannot depend on spreadsheets or scattered emails.

When data is dispersed, it is impossible to have a complete view, make quick decisions, or respond accurately to clients, banks, or government requests.

Adopting digital tools for ESG management is not just about comfort, it is a strategic decision.

Having access to reliable ESG data is the foundation for any effective reporting strategy. Understanding and aligning this data within recognized sustainable finance frameworks ensures consistency and comparability across the company’s sustainability goals.

It allows us to centralize all information in a single system, ensure data traceability, and eliminate manual errors.

In an environment where regulations evolve rapidly, this efficiency directly translates into time, control, and competitiveness.

Efficiency and Traceability: The Value of Centralizing Your ESG Information

When we manage ESG data through a digital solution, we gain a single, reliable, and updated source of information.

We no longer need to check different versions of the same document or waste time reconciling figures. Each piece of data has a clear origin, an update date, and complete traceability.

This centralization allows us to connect all information to various use cases, from CSRD, EU Taxonomy, or SBTi to EINF reports or ISO certifications.

Instead of recalculating or adapting reports one by one, the data is automatically distributed in the format required by each standard.

In addition, a digital tool gives us real-time visibility of the company’s performance.

We can identify deviations, anticipate risks, and make decisions based on verified information, not assumptions.

This makes the difference between reacting late and acting with strategy and agility.

How Good ESG Management Improves Your Company’s Competitiveness

Having a solid and digitalized ESG management system is not a trend; it is a real competitive advantage.

Companies that know how to measure and communicate their performance with clear data gain more business opportunities, financing, and strategic partnerships.

Moreover, large corporations and financial entities are demanding increasingly detailed ESG information.

If we do not have it ready or updated, we are left out of the conversation.

Therefore, having a digital tool that manages everything from one place not only helps us comply, but also allows us to respond quickly and reliably to market demands.

When we digitalize ESG management, sustainability stops being a burden and becomes a lever for efficiency and growth.

Measuring stops being a formality and becomes a way to improve processes, reduce costs, and make meaningful decisions.

Companies that measure, manage, and communicate their ESG data effectively will lead their sectors in the coming years.

Those that do not will simply fall behind, because today, not measuring means not competing.

Dcycle: The ESG Solution that Simplifies the Use of the VSME Template

The VSME template helps companies report their ESG information, but the real challenge lies in collecting, validating, and keeping that data updated.

This is where Dcycle comes into play, a solution for companies that want to go beyond compliance and turn ESG management into a real competitive advantage.

With Dcycle, we eliminate the technical complexity of the process.

We gather all ESG information from the company in one place, automate calculations, and ensure that data is always ready for any type of report.

Our mission is clear: simplify the work and save time, while maintaining traceability and consistency of information.

How Dcycle Automates ESG Data Collection, Validation, and Reporting

The first step in any ESG strategy is to have reliable and complete data. Instead of requesting information through emails or scattered spreadsheets, Dcycle automates data collection by connecting the internal and external sources of the company.

Once the information is collected, it is automatically validated, detecting inconsistencies or missing data before generating the report.

This prevents errors, reduces manual work, and ensures that the results are accurate and verifiable.

From there, the platform generates ready-to-send reports, adapted to different frameworks and standards.

In this way, we move from a long and manual process to a digital, continuous, and traceable workflow.

Direct Integration with the VSME Template and Other Reporting Formats

Dcycle’s technology is designed so that information can flow between different reporting formats without duplicating efforts.

Our platform integrates directly with the structure of the VSME template, which allows us to complete, update, and export information automatically.

But we don’t stop there. The same data can be reused for EINF, CSRD, EU Taxonomy, ISO certifications, or SBTi, without the need to recreate reports.

Thus, a single ESG database feeds all the use cases that the company needs to cover.

The result is a more efficient management process, where teams stop worrying about the format of the report and focus on what really matters: understanding and improving ESG performance.

A Platform to Turn Your ESG Data into Strategic Decisions

Measuring is only the beginning. The real value lies in using the data to make decisions.

At Dcycle, we offer a platform that not only generates reports but also analyzes the results and shows where the opportunities for improvement are.

Through customizable dashboards and automatic analyses, we help identify trends, risks, and critical points that affect results.

This allows the company to move from a reactive management approach to a data-driven strategy.

At Dcycle, we are not auditors or consultants, we are a solution for companies that want to integrate sustainability into their daily operations without adding operational burden.

Our technology turns reporting into an agile and transparent process, where every data point has purpose and utility.

With centralized management, connected to the VSME template, we help companies measure better, communicate better, and make smarter decisions.

Because measuring well is not just about compliance, it’s about competing better.

Frequently Asked Questions (FAQs)

What Type of Companies Should Use the VSME Template?

The VSME template is designed for non-listed companies that are micro, small, or medium-sized enterprises.

That is, companies that are not directly required to report under the CSRD, but still need to respond to ESG information requests from clients, banks, or partners.

Although it is voluntary, more and more SMEs are adopting it because it offers a structured and recognized way to present ESG data, without entering into the complexity of more technical standards.

In practice, it serves to stay competitive and aligned with market expectations.

Is It Mandatory to Use the VSME Template for Sustainability Reporting?

No, the use of the VSME template is completely voluntary.

However, the European Commission recommends its adoption as a reference framework for SMEs.

In fact, many business groups are already using it as a standard format to request ESG information from their suppliers.

Using it is not an obligation, but it is a strategic advantage.

It allows companies to anticipate future regulations and simplify data collection and reporting, without having to build a custom system from scratch.

What Is the Difference Between the VSME Template and Other ESG Formats?

The main difference is that the VSME template was specifically designed for SMEs, while other standards, such as ESRS or GRI, are focused on large corporations.

VSME prioritizes proportionality and simplicity. It only requests essential information, avoiding complex analytical processes such as double materiality assessments.

In addition, its digital and standardized format facilitates the connection with other reporting frameworks.

This allows companies to use the same data for multiple purposes: from CSRD compliance to SBTi, ISO, or EINF reports, without duplicating efforts or losing consistency.

Can I Automate the Completion of the VSME Template?

Yes, and in fact, it is the most efficient way to do it.

Completing the template manually can be slow and error-prone, especially when ESG data comes from different areas of the company.

At Dcycle, we are not auditors or consultants, we are a solution for companies that automates data collection, validation, and input into the VSME template.

Our technology connects ESG information sources, analyzes data consistency, and distributes the results directly into the appropriate fields.

This makes reporting fast, accurate, and traceable, without relying on manual processes or scattered spreadsheets.

How Can I Integrate the VSME Template with My Internal Data Systems?

Integrating the VSME template with internal systems is key to maintaining information consistency and avoiding duplication.

Ideally, you should have a platform that automatically connects to your data sources (billing, energy, HR, logistics, etc.) and translates them into the format required by the template.

At this point, Dcycle offers a clear advantage.

Our company solution centralizes all ESG data and automatically adapts it to VSME, CSRD, EU Taxonomy, SBTi, ISO, or EINF formats, without recreating reports.

This way, all ESG information is managed from a single system, always updated, verified, and ready for any type of report.

Because measuring and managing data properly is no longer optional, it is the way to stay competitive in today’s market.

Take control of your ESG data today.
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Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.