Why the VSME sustainability framework is a smart move for CSRD affected companies

As regulatory confusion surrounding the Omnibus proposals stalls Corporate Sustainability Reporting Directive (CSRD) implementation across the EU, companies of all sizes are searching for a practical, interim solution to keep sustainability reporting moving forward.

Enter the Voluntary Sustainability Reporting Standards for SMEs (VSME), recently adopted as a recommendation by the European Commission as part of its broader sustainable finance agenda. Developed by EFRAG, VSME is intended to support non-listed micro-, small-, and medium-sized enterprises in voluntarily disclosing sustainability information in a structured, stakeholder-relevant way. While originally targeted at SMEs, the framework is now gaining traction among larger companies, financial institutions, and consultants. Why? Because even as CSRD remains in flux, business continues, and stakeholders still expect timely, credible ESG data to inform decisions across value chains, investment portfolios, and procurement processes.

VSME fills that gap. It offers a lightweight, structured approach to sustainability disclosure that helps businesses report efficiently and allows larger organizations to gather meaningful ESG insights from their value chains. For many, it’s becoming more than a stopgap, it’s a strategic foundation for broader alignment and future CSRD readiness.

This post explores why VSME is gaining relevance far beyond SMEs, how businesses can use it to stay ahead of reporting demands, and what steps to take now in a shifting regulatory environment.

Who should use the VSME framework (And why it’s not just for SMEs)

While originally designed for SMEs, the VSME framework now serves a much wider audience, including medium-sized companies, especially as companies navigate delays and uncertainty around the Corporate Sustainability Reporting Directive (CSRD). VSME is emerging as a strategic reporting tool for any organization that needs to build ESG capacity, respond to stakeholder demands, or collect value chain data.

Here’s who should be taking VSME seriously. 

1. Businesses navigating CSRD uncertainty

If you are a company that was preparing for CSRD but now finds itself pausing efforts until the EU Commission has resolved the situation, the VSME framework serves as an excellent alternative during this interim period. VSME is a streamlined version of CSRD, requiring fewer resources while still addressing many key areas essential for a robust sustainability report. By adopting VSME, you can ensure you are well-prepared for future CSRD compliance when the time comes.

2. Companies not subject to CSRD, but anticipating pressure

If you’re a company currently outside CSRD’s legal scope, you may still face ESG disclosure requests from clients, investors, or regulators. VSME offers a credible framework to respond now, without waiting for regulation to catch up. It also provides a clear path toward CSRD alignment if your obligations change in future.

3. Organizations looking to build commercial resilience

If you’re receiving more ESG questionnaires or RFPs asking about sustainability, VSME helps you respond with structure and credibility. It’s a low-barrier way to communicate readiness, win business, and future-proof your operations in increasingly regulated supply chains.

4. Enablers of ESG reporting across business networks

Consultants, financial institutions, and industry associations all play a critical role in scaling ESG reporting. VSME provides a standardized, practical framework to support clients, borrowers, and member organizations, particularly those in the early stages of sustainability disclosure. It simplifies onboarding, improves data consistency, and accelerates ESG readiness across portfolios and supply chains.

How to get started with VSME: A practical guide

Step 1: Identify why you’re reporting 

Are you disclosing to investors? Corporate clients? Banks? Are you just starting your sustainability journey and unsure what to include? Or are you preparing for CSRD while awaiting further information from the EU commission? It’s important to understand why you are reporting, so you can set your ambitions for VSME reporting.

Step 2: Map your current ESG practices

Inventory what you already track, GHG emissions, energy use, workforce data, policies. You likely have more than you think.

Step 3: Use the VSME basic module

Start with the “Basic” level of VSME. It’s designed for quick implementation and covers the essentials across E, S, and G.

Step 4: Engage internal stakeholders

Reporting shouldn’t sit with one person. Bring in finance, operations, HR, and leadership early to build ownership.

Step 5: Add the VSME comprehensive module

Depending on your size and ambitions, it could make sense to add the comprehensive module to your reporting, as it aligns more closely with CSRD disclosures and covers additional information that investors, banks, and corporate clients typically request.

Step 6: Build toward CSRD compatibility

Once the essentials are in place, start layering in materiality assessments, policy disclosures, and value chain considerations aligned with ESRS.

VSME as a strategic foundation

Regulation may be delayed, but expectations are not. VSME lets companies act now, at low cost and low risk, while creating a foundation for future compliance. Used well, VSME isn’t just a reporting tool, it becomes a bridge between short-term business needs and long-term sustainability strategy.

Normative can support companies looking to adopt the VSME framework, whether you’re reporting for the first time or managing ESG data across your supply chain. Reach out to learn how our expert team can help operationalize your sustainability reporting with clarity and confidence.