CoPLIANCE prepares a sustainability report in accordance with the EU standard for companies that do not fall within the scope of the CSRD Directive.
Brief introduction>
In January 2024, the EU published a first draft of the "Voluntary SME Standard" (VSME) to help small and medium-sized enterprises (SMEs) simplify the documentation of their sustainability goals and projects. This initiative aims to support SMEs in overcoming the challenges of sustainability reporting and to reduce the burden on them.
BASICS>
Although small and medium-sized enterprises (SMEs) are not legally obliged to prepare sustainability reports, they are often asked to do so by business partners and customers. These requirements can vary greatly and represent an additional burden for SMEs. In order to reduce this burden, the EU Commission has commissioned the European Financial Reporting Advisory Group (EFRAG) to develop the "Voluntary SME Standard" (VSME). The VSME is intended to support SMEs in documenting their sustainability goals and offer a voluntary alternative to the individual questionnaires that SMEs often receive from reporting companies. The first draft was published on January 22, 2024. The aim is to create a uniform standard for sustainability reporting that is accepted by business partners.
Significance AND ADVANTAGES>
Implementing the VSME standard offers companies several advantages:
Increased transparency of sustainability efforts, which can lead to greater confidence building among stakeholders.
Reduced administrative effort in sustainability reporting, which results in increased efficiency.
More efficient communication of sustainability goals and projects, which improves internal and external perception.
Time and resource savings, as less effort is required to adapt to different reporting requirements.
Strengthening the corporate image, which can have a positive impact on brand perception.
Promoting long-term business success through sustainable practices and improving competitiveness.
These benefits illustrate how the VSME standard not only supports companies in their sustainability efforts, but also promotes business efficiency.
Modules and possible applications >
The VSME draft offers three modules that enable companies to document sustainability information on various aspects: the Basic Module, the Actions and Targets (PAT) Module and the Business Partner Module.
The basic module of the VSME draft is aimed at micro-entities in accordance with the Accounting Directive and comprises the minimum requirements. A materiality analysis is not required. It contains around 30 data points, requiring information on module applications, consolidation levels, naming of subsidiaries and specific practices for a more sustainable economy.
The Narrative Policies, Actions and Targets (PAT) module extends the basic module and is aimed at companies that have already defined formal corporate policies, actions and targets in the area of sustainability. A materiality analysis in accordance with the VSME draft standard is required to ensure the disclosure of material sustainability information.
The business partner module (BP module) can be used in conjunction with the basic module or with the basic and PAT modules. It contains additional data that goes beyond the disclosures in B 1 to B 12 and is required by lenders, investors and business partners of the company.
Choose either the basic module alone or in combination with the PAT module, the Business Partner module or both.
Variant 1: Basic module only
Variant 2: Basic module + PAT module
Variant 3: Basic module + Business Partner module
Variant 4: All three modules together
Details>
Your first sustainability report according to EU guidelines! Specially designed for SMEs and ideal for taking a meaningful step towards sustainability.
According to the draft VSME standard, the basic module is specially designed for micro-enterprises in accordance with the Accounting Directive and has the most minimal requirements. An analysis of materiality is not required.
We have already successfully supported a large number of companies in successfully implementing the VSME standard. Our partnerships have enabled these companies to clearly define, implement and transparently communicate their sustainability goals.
The VSME standards (Voluntary ESRS for SMEs) are voluntary EU standards for sustainability reporting by small and medium-sized enterprises (SMEs) that do not fall under the scope of the CSRD.
The VSME aims to support small and medium-sized enterprises (SMEs) in documenting their sustainability goals and projects. The initiative aims to support SMEs in overcoming the challenges of voluntary sustainability reporting and to ease the burden on them.
The voluntary standards provide an adapted framework for sustainability reporting that is tailored to the specific capacities and needs of SMEs. They include basic requirements for reporting on environmental, social and governance aspects, but are simpler and less extensive than the full CSRD requirements.
Participation in the voluntary standards offers SMEs numerous advantages. It enables companies to make their sustainability efforts visible and thus strengthen the trust of customers, investors and other stakeholders. In addition, reporting can help raise awareness and understanding of the importance of sustainable business practices while identifying potential efficiency gains and cost savings.
CONTACT>
Find out how CoPLIANCE can support your company in implementing ESG guidelines. Contact our sales team for customized compliance solutions.