Voluntary Sustainability Standard Reporting (VS, formerly VSME)
One reporting framework for multiple stakeholder requests
Many small and medium-sized enterprises (SMEs) are increasingly asked to provide ESG information to customers, banks, investors and business partners, even if they are not directly subject to the Corporate Sustainability Reporting Directive (CSRD). Responding to multiple questionnaires and sustainability information requests individually can be time-consuming, resource-intensive and often results in inconsistent data.
To simplify this process, the European Commission adopted the Voluntary Sustainability Standard (VS), building on the VSME framework. Designed primarily for companies with up to 1,000 employees, the VS provides a standardized framework for collecting, managing and sharing sustainability information. Its modular structure enables companies to address different stakeholder requirements using one consistent reporting approach.
DEKRA supports you with a practical and structured approach, from defining the reporting scope and collecting ESG data to preparing a sustainability report that supports stakeholder communication, supply chain requirements and ESG ratings.
Why the VS matters
The Voluntary Sustainability Standard (VS) provides a common framework for sustainability information requests across value chains. Instead of responding to multiple questionnaires from different stakeholders, companies can rely on one structured reporting approach that supports customer requirements, bank information requests, supplier assessments and ESG ratings.
Our Approach
We turn voluntary sustainability reporting into a structured and practical process, helping you respond efficiently to sustainability information requests from customers, banks and business partners.
The Voluntary Sustainability Reporting Standard (VS) was adopted by the European Commission for companies outside the scope of mandatory CSRD reporting, primarily those with up to 1,000 employees. It provides a practical and proportionate approach to sustainability reporting.
The VS helps organizations respond more efficiently to increasing requests for environmental, social and governance (ESG) information from customers, banks and business partners through one structured reporting framework. Its modular structure allows reporting to be tailored to different stakeholder requirements while maintaining consistency and comparability.
In addition, the VS is aligned with the European Sustainability Reporting Standards (ESRS), providing a simplified entry point into sustainability reporting while remaining compatible with the broader European reporting framework.
Even if your company is not legally required to report ESG information, customers, banks and business partners are increasingly asking for it. VS reporting helps reduce the effort associated with multiple questionnaires and information requests by providing one structured approach to sustainability reporting.
The VS is particularly relevant for SMEs and mid-sized companies that act as suppliers to CSRD-reporting companies or operate within complex value chains. It helps organizations respond to stakeholder expectations more consistently and efficiently while improving the availability and structure of ESG information.
The Voluntary Sustainability Reporting Standard (VS) builds on the VSME framework originally developed by EFRAG for SMEs. While the VSME was designed primarily for companies with up to 250 employees, the VS expands its scope to organizations with up to 1,000 employees. It was adopted by the European Commission as part of the wider simplification of European sustainability reporting requirements and represents the evolution of the VSME framework into the VS. The level of detail can be tailored to the company’s size, sector, and stakeholder expectations.
The Value Chain Cap is a mechanism introduced under the EU sustainability reporting framework to limit the sustainability information that large companies subject to CSRD can request from companies with up to 1,000 employees in their value chains.
The VS serves as the reference framework for these requests, providing a common structure for sustainability information and helping improve consistency across supply chains.
The Value Chain Cap applies only to requests from companies within the scope of the CSRD. Banks, investors and other stakeholders may still request additional sustainability information beyond the VS, depending on their specific requirements.
The Value Chain Cap applies only to requests from companies within the scope of the CSRD. Banks, investors and other stakeholders may still request additional sustainability information beyond the VS, depending on their specific requirements.
A VS report combines narrative disclosures with quantitative ESG indicators. It typically covers:
- Governance and reporting practices
- Environmental topics such as energy use and greenhouse gas emissions
- Social aspects including workforce and health and safety
- Business conduct and ethical practices
The modular structure allows companies to adjust reporting depth according to stakeholder expectations and business needs.
Unlike ESRS reporting under the CSRD, the VS does not require a double materiality assessment. Instead, companies report predefined disclosures using an “if-applicable” approach and may omit non-relevant items where appropriate, providing a short justification.
Depending on the selected reporting scope and stakeholder expectations, companies may also provide additional information on topics such as strategy, targets, and selected human rights disclosures.
Unlike ESRS reporting under the CSRD, the VS does not require a double materiality assessment. Instead, companies report predefined disclosures using an “if-applicable” approach and may omit non-relevant items where appropriate, providing a short justification.
Depending on the selected reporting scope and stakeholder expectations, companies may also provide additional information on topics such as strategy, targets, and selected human rights disclosures.
DEKRA supports companies throughout the VS reporting process:
- Define Reporting Scope: Establish reporting boundaries, identify relevant requirements and create a project roadmap.
- Collect ESG Data: Gather sustainability information using structured templates and expert guidance.
- Support VS Report Preparation: Structure and compile ESG information into a sustainability report aligned with the VS framework.
The result is a structured sustainability report that creates transparency regarding ESG performance, supports the development of sustainability management and provides a basis for communication with customers, banks and other stakeholders.
DEKRA offers three service packages to reflect different reporting objectives, stakeholder requirements and levels of ESG maturity:
BASIC:
A practical starting point for organizations beginning structured ESG reporting and responding to common sustainability information requests.
A practical starting point for organizations beginning structured ESG reporting and responding to common sustainability information requests.
STANDARD:
A comprehensive reporting package covering the sustainability information commonly requested by customers, banks and business partners, while providing structured ESG information that can support supplier assessments and ESG ratings such as EcoVadis.
A comprehensive reporting package covering the sustainability information commonly requested by customers, banks and business partners, while providing structured ESG information that can support supplier assessments and ESG ratings such as EcoVadis.
PLUS:
An expanded reporting package with additional ESG disclosures to address specific stakeholder requirements, international frameworks and more advanced reporting needs.
An expanded reporting package with additional ESG disclosures to address specific stakeholder requirements, international frameworks and more advanced reporting needs.
All packages follow the same DEKRA process while varying in scope and reporting depth.
The duration depends on your company's size, data availability, and reporting scope. Most organizations complete their first VS report within several weeks to a few months, including project setup, data collection and report preparation, when supported by structured templates and expert guidance.
Once reporting processes, templates and data structures have been established, future reporting cycles typically require significantly less time and effort..
VS reporting is voluntary. Companies are not required to publish or obtain independent assurance for their sustainability report.
Companies can decide whether to use the report internally, share it selectively with customers, banks or business partners, or publish it more broadly. They can also decide which information is disclosed publicly, and which information is shared only with selected stakeholders.
Although not required, independent assurance can increase confidence in reported information and support discussions with relevant stakeholders.
Once your report is finalized, DEKRA discusses key findings, observations and potential improvement areas with you. The completed report can be used to respond to sustainability information requests, facilitate supplier assessments and provide structured information for ESG ratings such as EcoVadis.
Depending on your objectives, DEKRA can also support further initiatives such as carbon accounting, materiality assessments and broader sustainability management initiatives.
Why DEKRA
- SME and mid-market expertise: Long-standing experience supporting SMEs and mid-sized companies with practical and resource-efficient sustainability reporting.
- Practical ESG guidance: Extensive experience with VS, ESRS, CSRD, GRI and ESG ratings supports efficient and proportionate reporting.
- Independent credibility: Sustainability expertise backed by decades of testing, inspection, certification, verification and assurance experience creates a unique perspective on sustainability information and performance
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