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VSME Standard

The VSME Guide
for small businesses

Everything you need to know about the VSME reporting standard — from basics to implementation. Written for Greek SMEs.

15 min read
Updated June 2026

What is VSME?

VSME (Voluntary SME Standard) is the ESG reporting framework developed by EFRAG — the European Financial Reporting Advisory Group — specifically for small and medium enterprises. Unlike CSRD, which targets large companies, VSME is voluntary and proportionate to the resources of smaller businesses.

The standard was finalised in 2024 and provides a clear, manageable pathway for SMEs to disclose sustainability information to banks, investors, large clients, and supply chain partners who request it.

Key point: VSME is voluntary for SMEs but may be requested by banks, large clients, or supply chain partners as part of their own CSRD compliance obligations.

The Basic Module

The Basic Module is the starting point for most SMEs. It covers 5 core sustainability topics and requires approximately 11 data points — achievable in 1 to 2 working days with help from your accountant or office manager.

Basic Module at a glance

Topics Data Points Effort
5 topics ~11 data points 1–2 days

The five topics covered are:

  • Business model & strategy
  • Policies & standards
  • Targets
  • Energy & greenhouse gas emissions
  • Workforce & human rights

The Comprehensive Module

The Comprehensive Module builds on the Basic Module and adds 6 additional topic areas for SMEs that want greater depth or face more scrutiny from supply chain partners.

Additional topics in the Comprehensive Module

💧 Water use
🌿 Biodiversity
🔗 Supply chain
🏘️ Community impact
🏛️ Governance
💡 Innovation

Most Greek SMEs should start with the Basic Module. Only move to Comprehensive if a bank, investor, or large client specifically requests it.

Who qualifies?

Any SME can use VSME — there is no minimum size or revenue threshold. The standard is specifically beneficial for businesses that:

  • Supply to large CSRD-reporting companies
  • Seek ESG-linked bank financing or green loans
  • Want to tender for EU-funded projects
  • Export to markets that require sustainability disclosures

Greek context: From 2026, Greek banks are expected to require basic ESG data from SME borrowers as part of their own regulatory requirements. Starting your VSME report now puts you ahead of this.

Timeline & Deadlines

VSME is voluntary, so there is no fixed regulatory deadline. However, market forces are creating practical deadlines:

When What happens
2025 Large companies (250+ employees) publish first CSRD reports — they start asking suppliers for ESG data
2026 Greek banks expected to request ESG data from SME loan applicants
2027 Mandatory VSME-equivalent disclosure may become required for listed SMEs

Common questions

No. VSME is voluntary for SMEs under current EU law. However, your bank, clients, or supply chain partners may request VSME data as part of their own compliance requirements. We recommend preparing now rather than waiting.
The Basic Module typically takes 1–2 working days for a small team with access to your business data. With a consultant, the process can be completed in under a week including data verification.
You will need: employee headcount and demographics, energy bills (electricity, gas, fuel), any written policies on environment or workforce, basic supplier information, and a description of your business activities and any sustainability targets. Most of this exists in your accounts or HR records.
No. VSME is a separate framework designed for SMEs. GRI is an international standard used by larger companies. CSRD is an EU directive that applies to large companies (250+ employees). If your business grows past the SME threshold, you would eventually need to transition to CSRD.
No — the Basic Module is designed to be completed in-house. However, for the first time, many businesses find it helpful to work with a consultant for data quality, interpretation, and ensuring the report meets the expectations of banks or clients. Physisorg can match you with a verified consultant.

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