The VSME standard divides non-financial reporting into a Basic Module and a Comprehensive Module. Use our comparison table and implementation checklist to efficiently prepare your ESG data. Learn how to connect carbon footprint calculations with your report and how the NEOGAGE system streamlines this process.
TABLE OF CONTENTS
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VSME Basic and Comprehensive - the short answer
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How do the two modules differ?
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When should you choose VSME Basic?
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When is the Comprehensive Module necessary?
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What data needs to be prepared for the report?
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How to combine carbon footprint data with the VSME report?
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7-step implementation checklist
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FAQ
1.VSME BASIC AND COMPREHENSIVE - THE SHORT ANSWER
The VSME standard (Voluntary Sustainability Reporting Standard for non-listed SMEs), published by EFRAG in December 2024, is the official set of guidelines for voluntary non-financial reporting for the SME sector. Its overarching goal is to standardize the data provided to large contractors in the supply chain and to financial institutions.
The architecture of the standard is based on two main variants:
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Basic Module: Represents the minimum requirement for small and medium-sized enterprises and the target approach for micro-enterprises. Applying this module is a mandatory prerequisite for preparing the report.
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Comprehensive Module: This is an extension applied to the Basic module. It contains additional data points most frequently requested by banks, investors, and corporate clients for an in-depth assessment of the sustainability risk profile.
2.HOW DO THE TWO MODULES DIFFER?
To optimize the data collection process, the project team must understand the differences.
GENERAL INFORMATION
Basic: Basis for preparation (B1) and general practices and initiatives (B2).
Comprehensive: Detailed strategy, business model (C1), and extended description of initiatives (C2).
ENVIRONMENT (E)
Basic: Carbon footprint Scope 1 and Scope 2 (B3), pollution (B4), biodiversity (B5), water (B6), waste (B7).
Comprehensive: Emission reduction targets, Scope 3 emissions (C3), and climate risks (C4).
SOCIAL (S)
Basic: Workforce characteristics (B8), health and safety (B9), remuneration, training (B10).
Comprehensive: Additional workforce characteristics (C5), human rights policies (C6), severe incidents (C7).
GOVERNANCE (G)
Basic: Convictions and fines for corruption (B11).
Comprehensive: Revenues from sensitive sectors (C8) and gender diversity ratio (C9).
3.WHEN SHOULD YOU CHOOSE VSME BASIC?
The Basic Module is the ideal starting point. It should be selected when:
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The company has the status of a micro-enterprise.
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Contractors exclusively expect basic data on energy consumption and Scope 1 and 2 emissions.
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The organization wants to focus on inventorying hard metrics related to utility consumption, occupational health and safety (OHS), and employment structure.
4.WHEN IS THE COMPREHENSIVE MODULE NECESSARY?
Implementing the Comprehensive Module becomes an operational necessity when:
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Banks assess the risk profile before granting green financing.
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Corporate clients demand the reporting of value chain emissions (Scope 3).
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The company has established long-term reduction targets.
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Auditors impose the requirement to report human rights policies and board structure.
5.WHAT DATA NEEDS TO BE PREPARED FOR THE REPORT?
Preparing a VSME report is a cross-functional process:
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Finance / Purchasing Department: Collects electricity and fuel invoices to calculate energy consumption broken down into renewable and non-renewable sources.
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HR / OHS Department: Provides data on headcount, workplace accidents, employee turnover, and training.
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Management Board / Legal Department: Discloses convictions for corruption and precisely describes the business model.
6.HOW TO COMBINE CARBON FOOTPRINT DATA WITH THE VSME REPORT?
Manually merging hundreds of invoices with ESG guidelines in spreadsheets creates a high risk of error. Instead of risking data integrity, the organization can use the NEOGAGE Carbon Footprint module, which automatically calculates emissions in accordance with the GHG Protocol.
Subsequently, thanks to seamless integration, the calculated values feed the NEOGAGE ESG Reporting platform. The system relieves the team of the burden of manual data transfer and automates the creation of the VSME document.
7.7-STEP IMPLEMENTATION CHECKLIST
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Define the reporting scope (Basic or Comprehensive).
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Map data sources for resource consumption and HR.
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Assign responsibilities within the NEOGAGE ESG system.
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Automate carbon footprint calculations from invoices.
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Collect workforce and governance metrics.
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Monitor data completeness on the dashboard.
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Generate the final report for the auditor.
8.FAQ
Is VSME reporting mandatory? No. It is a voluntary tool for non-listed SMEs. However, it is becoming a market requirement due to the supply chains of corporations covered by the CSRD directive.
Is calculating Scope 3 emissions necessary? The Basic Module requires disclosing only Scope 1 and Scope 2. Indirect Scope 3 emissions should only be included in the Comprehensive Module if they are significant to the company.
Does the VSME-based report need to be verified by an auditor? According to the EC recommendation, an external audit (assurance) is not required for SMEs. In practice, however, corporations may demand reliable system data to safely incorporate it into their own non-financial reports.
Ready to implement the VSME standard? The NEOGAGE ESG platform centralizes data and generates the report in minutes. Check during a live presentation which data from your company corresponds to the disclosures. Book a demo and see the system in action.