How to Improve ESG Scores for SMEs: Tips for a Better Sustainability Rating

The VS standard was developed explicitly for companies that do not (yet) fall under the statutory reporting obligation of the Corporate Sustainability Reporting Directive (CSRD). So you have no direct legal obligation. However, the market creates a strong indirect obligation: Customer requirements: Large companies that are themselves subject to the CSRD must report on their entire supply chain. They will therefore require the necessary ESG data from their suppliers – that is, from you. A missing report can become an exclusion criterion here. Financing conditions: Banks and investors are legally obliged (e.g. by the EU Taxonomy) to assess the sustainability performance of their investments and borrowers. A standardised ESG report provides the data for this and is increasingly becoming a condition for loan approvals or better terms. Conclusion: The VS report is your proactive, strategic answer to the real requirements of your most important business partners. With ESGLift, you meet these requirements efficiently and professionally.

The short answer: Think of it as a modular system. The CSRD is the legislation, the ESRS are the complex building blocks for large corporations, and the VS standard is the tailored, simplified framework for SMEs. The detailed explanation: It is crucial to distinguish between these three concepts: CSRD (Corporate Sustainability Reporting Directive): This is the EU regulation. It mandates that specific (primarily large) companies must publish sustainability disclosures. It serves as the legal framework. ESRS (European Sustainability Reporting Standards): These are the granular reporting standards. They dictate precisely what and how large, CSRD-compliant organisations must report. The ESRS are highly comprehensive and complex. Voluntary Standard (VS): This is the proportional ESG reporting standard for SMEs. It was developed to enable smaller enterprises to meet market demands and supply chain requirements without being overwhelmed by the extensive scope of the ESRS. Crucially, the VS standard is fully aligned with the ESRS, meaning the ESG data you provide can be seamlessly integrated by your ESRS-regulated business partners. Conclusion: By publishing a VS report, you speak the same ESG language as large enterprises and financial institutions, utilising a vocabulary tailored to your company's scale. Our software translates this framework into a simple, guided ESG reporting process.

A professionally prepared ESG report is an investment that pays off several times over: Improved access to capital: You provide banks and investors with the data they need for their risk assessment. This speeds up financing processes and can lead to better terms. Stronger competitive position: In public and private tenders, sustainability is increasingly becoming the decisive award criterion. With a VS report, you clearly stand out from competitors and become a “preferred supplier”. Efficient risk management: The reporting process makes you engage with future risks – from rising CO2 prices to new circular economy legislation. You identify weaknesses before they become a problem. Identifying cost savings: Analysing your consumption data, e.g. for the carbon footprint, often reveals considerable savings potential, whether in energy, water or materials. Attractiveness as an employer (employer branding): The younger generation of skilled workers in particular looks specifically for employers that demonstrably take responsibility. A transparent ESG report is a strong argument in the “war for talent”. Conclusion: ESGLift not only delivers the finished report but also the data and insights you can use to make your company more future-proof, more efficient and more attractive.