The business world is changing. What used to be optional, demonstrating your commitment to the environment, people, and ethical management, is quickly becoming a requirement.
Not just because of regulations coming from Europe, but also because clients, suppliers, financial institutions, and even employees want to know more:
What is your company doing for the planet? How does it treat people? Does it have a clear strategy for the future?
Until recently, small businesses were left out of this conversation. Sustainability seemed like a thing for large corporations. But that has changed.
Today, SMEs can, and should, communicate what they’re doing. And they can do it using a simple, accessible framework tailored to their needs: the VSME standard.
VSME stands for Voluntary Sustainability Standard for Micro Enterprises and SMEs.
It’s a voluntary sustainability standard specifically designed for micro, small, and medium-sized enterprises.
It was developed by EFRAG, the European body responsible for defining how companies should report on sustainability, and it’s a simplified, adapted version of the CSRD framework.
The main difference? It’s not mandatory, and it’s not designed for large publicly traded companies.
The goal is to allow any SME, regardless of sector or size, to create a clear, proportional, and useful sustainability report.
The standard includes questions, indicators, and thematic blocks, but also leaves room for flexibility so each company can speak from its own reality.
There are many reasons an SME might consider creating its first VSME report:
To show how a VSME report can be structured, let’s follow the fictional case of Ejemplo Sostenible S.L., a textile company based in Spain.
With over a decade in operation and a solid team, they’ve decided to formalize and communicate their sustainability commitment.
Not because of legal obligations, but because they believe the time is right to take that step.
The standard divides content into thematic blocks. You don’t need to follow all of them or use technical language.
But you are encouraged to clearly answer a few key questions. Here are some of them:
Every report should begin by explaining who the company is: what it does, what sector it operates in, its history, organizational structure, headquarters location, workforce size, and approximate scale of operations.
There’s no need to share confidential figures, but context is important.
This section can also include a brief vision statement on sustainability: why it matters to the business model, how it fits the company culture, and what the company hopes to achieve in the medium term.
This is where the company outlines its core sustainability principles and internal policies. This may include:
For Ejemplo Sostenible S.L., the focus is on reducing environmental impact, fostering a fair working environment, and maintaining ethical supplier relationships.
A good report goes beyond commitments. It should describe what is actually being done:
In our fictional company, actions include upgrading machinery to cut energy use, launching an internal recycling program, and training staff in sustainable practices.
Sustainability is a journey, not a destination. That’s why the VSME framework also asks about the future. What needs improvement? What goals have been set?
Examples:
The goal isn’t to promise the impossible, but to show real, achievable steps forward.
Exact figures are not required, but relevant environmental data is encouraged. For example:
This section helps demonstrate, tangibly, the company’s environmental footprint and how it's being managed.
Beyond the environment, people matter. Key aspects include:
Ejemplo Sostenible, for instance, highlights that all employees have received sustainability training and that safety measures are in place to prevent workplace accidents.
This section covers governance: how decisions are made, which values are promoted, and what mechanisms prevent misconduct.
You don’t need to be a large corporation to have a basic ethical structure. Many SMEs already follow these practices informally. This block simply formalizes and makes them visible.
An SME doesn’t act in isolation. VSME encourages looking outward toward suppliers and partners. Possible actions:
Ejemplo Sostenible, for example, has begun working with its supplier network to ensure everyone meets a minimum sustainability standard.
It’s not just about compliance, it’s about listening. A VSME report can include how you engage with key stakeholders:
SMEs don’t need massive forums, sometimes regular meetings, anonymous surveys, or an active contact section on your website are enough.
To wrap up, many companies include a final reflection:
In the case of Ejemplo Sostenible, they highlight the challenge of measuring indirect supply chain impact, but also the potential of the circular economy and the competitive edge of being sustainable in a traditional sector.
A VSME report isn’t meant to sit in a drawer. You can:
And since it’s a voluntary framework, it can evolve each year, improving format and diving deeper into new topics. It’s not about perfection on day one. It’s about getting started.
Sustainability is no longer a luxury. It’s a tool for competitiveness, talent attraction, differentiation, and long-term viability.
With the VSME framework, any SME can take that first step without overcomplicating things.
You don’t need to be a big company to make a big commitment.
You just need the will, some structure, and the courage to tell your story well.
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Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.
The most recognized methodologies are:
Digital tools like Dcycle simplify the process, providing accurate and actionable insights.
Some strategies require initial investment, but long-term benefits outweigh costs.
Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.
