SMEs Sustainability Reporting · EFRAG VSME

Sustainability Reporting involves organisations disclosing Environmental, Social, and Governance · ESG impacts.

In the EU, there are two main Reporting Standards:

1) The European Sustainability Reporting Standard · ESRS is a Mandatory Framework under the Corporate Sustainability Reporting Directive · CSRD

2) The Voluntary Sustainability Reporting Standard · VSME is a Voluntary Framework for non-listed SMEs by the European Financial Reporting Advisory Group · EFRAG

VSME and ESRS are interconnected, allowing Micro-, Small-, and Medium-Sized Enterprises · SMEs to align their voluntary efforts with broader EU regulatory standards.

VSME prepares SMEs to go beyond compliance, mapping Risks and Opportunities to remain competitive by improving transparency about their Sustainability performance and incorporating ESG strategies into their business operations; thereby enhance credibility.

Two-Module SME-friendly Approach:

  • Basic Module (11 disclosures)

    To be completed to use the Comprehensive Module

  • Comprehensive Module (9 disclosures)

    Intended for receiving sustainability information requests from business partners such as Financial Institutions, Corporate Clients, Lenders & Investors

  • Key Benefits:

    Flexible: SMEs can choose a module that fits their capabilities and stakeholder needs

    Scalable: Allows SMEs to start with basic reporting and expand when ready

EFRAG VSME Scope:

  • B1 – Basis for Preparation

    B2 – Sustainability Practices, Policies, and Future Initiatives

    C1 – Business Model & Strategy

    C2 – Extended Sustainability Practices & Policies

  • B3 – Energy Consumption & Greenhouse Gas (GHG) Emissions

    B4 – Pollutant Emissions

    B5 – Biodiversity Impact

    B6 – Water Withdrawal & Consumption

    B7 – Resource Management & Circular Economy

    C3 – GHG Reduction Targets & Climate Transition Plans

    C4 – Climate-related Risks & Timeframes

    Scope 3 GHG Emissions

  • B8 – Workforce Characteristics

    B9 – Health & Safety

    B10 – Employee Rights & Development

    C5 – Extended Workforce Characteristics

    C6 – Human Rights Policies & Processes

    C7 – Severe Human Rights Incidents & Actions Taken

  • B11 – Corruption & Bribery Convictions

    C8 – Sector Revenues & Exclusions from EU Benchmarks

    C9 – Governance Body Gender Diversity

As a result of the Omnibus Package Proposal 2025, if approved, all companies below ≤ 1,000 employees, and net turnover < €50 million or a balance sheet total < €25 million would fall under the VSME Standard to report their ESG & Sustainability performance.

Tiaki helps Real Estate organisations with climate ambition in preparing to report using the EFRAG VSME Standard.

Key Objectives:

  • Improve ESG & Sustainability Management

  • Meet Data Requests from Larger Businesses

  • Gain access to Green Financing

  • Contribution towards a sustainable and inclusive Economy transition

  • Provide transparency, take Corporate Responsibility

The “If Applicable” VSME principle replaces the Double Materiality Assessment meaning:

  • Data only needs to be disclosed if it is relevant to the company's operations

  • Reduces reporting burden and costs for SMEs

Building trust with ESG!