What is the difference between VSME and ESRS in ESG reporting?
ESRS (European Sustainability Reporting Standards) are the mandatory reporting standards for CSRD-compliant large corporations, comprising over 1,100 data points. The VSME serves as the voluntary, SME-tailored simplification featuring 147 data points – fully compatible with ESRS data requirements, yet eliminating the bureaucratic burden.
What are ESRS?
The European Sustainability Reporting Standards (ESRS) are the detailed technical standards that companies subject to the CSRD must use for their ESG reporting. Also developed by EFRAG, they comprise over 1,100 data points across environmental, social, and governance criteria. Developing an ESRS-compliant sustainability report requires dedicated ESG teams and statutory auditors.
VSME as a Simplified ESRS Alternative for SMEs
The VSME framework utilizes the same structural logic as the ESRS but radically reduces the scope to 147 material data points. Consequently, a VSME report is sufficiently compatible with ESRS requirements to satisfy the Scope 3 data demands of large corporate entities subject to CSRD—without requiring SMEs to compile a comprehensive, full-scale ESRS disclosure.
Practical Implications for SMEs
As an SME supplier to a CSRD-compliant corporate client, a VSME report is fully sufficient to address supply chain ESG questionnaires. ESG Lift generates this EFRAG-compliant VSME report in just 1–3 hours, with pricing starting at €590/year.
VSME vs. ESRS: What the difference is, why SMEs use VSME instead of ESRS, and how both standards are connected for ESG reporting.