Why preparing a voluntary VSME report is worth it

At BDO, our firms work with businesses of all sizes and we understand that sustainability reporting can feel daunting – especially for smaller companies. Having just completed a report for the BDO Global Office using the EU’s Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), I recommend it as a practical, accessible standard, written in plain English.  This makes it a great starting point for businesses because it’s far less intimidating than many other frameworks.

So why should your company consider preparing a voluntary VSME report? 

1. It’s easier than you think

One of the biggest hurdles for smaller businesses is complexity. Many sustainability standards can feel overwhelming, full of jargon and technical detail. VSME flips that on its head. The guidance is clear, straightforward, and designed for businesses without specialist sustainability teams. That means you can get started without hiring consultants or spending weeks decoding terminology.

2. A foundation for your sustainability strategy

Reporting isn’t just about ticking boxes – it’s about understanding where you stand and where you want to go. Preparing a VSME report helps you identify what matters most to your business and your stakeholders. It’s a great starting point for building a sustainability strategy that feels achievable and relevant.

3. Metrics make progress visible

When you start measuring things – energy use, employee health and safety, gender diversity – you create a baseline. From there, it’s much easier to track improvements and celebrate wins. Having clear metrics also makes conversations with clients, suppliers, and other stakeholders more credible. It shows you’re serious about sustainability, not just talking about it.

4. Builds trust and competitive advantage

Clients, employees, banks and other stakeholders want to work with businesses that care about their impact. A voluntary report signals transparency and responsibility, and demonstrates commitment. It can strengthen relationships, open doors to new opportunities, and even give you an edge in tenders or partnerships where sustainability is a factor.

5. Future-proofing your business

Regulation is moving fast. While VSME reporting is voluntary now, sustainability disclosure requirements are becoming more common globally. Starting early means you’ll be ahead of the curve, with systems and data already in place when reporting becomes mandatory.

What to consider for your first VSME report

• Start small: Focus on the areas most relevant to your business. You don’t need to cover everything at once
• Use the guidance: The VSME standard is user-friendly – lean on it
• Engage your team: Sustainability works best when all the key stakeholders are involved. Ask for ideas and input, and engage them early in the preparation process.
• Celebrate progress: Every small step matters. Share your achievements with clients and staff.

Preparing a VSME report isn’t just about compliance – it’s about clarity, credibility, and creating a roadmap for a more sustainable future. For many businesses, it’s the first step towards turning good intentions into measurable action.

The VSME was originally written for non‑listed micro, small and medium-sized enterprises and is aligned with the European Sustainability Reporting Standards (ESRS), covering the same Environmental, Social & Governance (ESG) topics but proportionate to the needs of smaller businesses.

Under the Omnibus 1 agreement, companies in scope of the Corporate Sustainability Reporting Directive (CSRD) will face strict limits on the sustainability information they can request from smaller companies in their value chain: these requests must not exceed what is included in the VSME standard.

For companies with up to 1,000 employees, the Commission may adopt a voluntary reporting standard by means of a delegated act. This voluntary standard will be based on the VSME standard, although changes are not ruled out.  

The VSME standard, along with some guidance and tools, can be found on the EFRAG website. BDO in Ireland has a summary of the Omnibus changes and the details can be found here.