The official version of the VSME ESRS has been published: What has changed?

The Voluntary Small and Medium Enterprise European Sustainability Reporting Standard (VSME ESRS), which was developed specifically for micro, small and medium-sized enterprises (SMEs), offers a simplified way to disclose sustainability information. After the draft version of the VSME ESRS was published in December 2023, the final version is now available, which was officially adopted by the EU on July 30, 2025.

The VSME is becoming increasingly important, particularly as a result of the current omnibus regulation. Companies that were originally subject to the CSRD reporting obligation but have now been removed from its scope can use the voluntary standard as a viable alternative to continue their reporting. This is particularly relevant for companies that have already taken their first steps in sustainability reporting or wish to prepare strategically for future requirements.

Note: The Omnibus regulation is currently still at the proposal stage and further decisions are pending. This article is based on the version of Omnibus as it stands today (31.07.25).

In this article, we take a look at how the standard has evolved, what changes have been made and why it will continue to play an important role.

Table of contents

1. Timeline: Where are we today?
2. The most important changes to the final version
3. Why the VSME is relevant
4. How to implement the VSME with Code Gaia

1. timeline: Where are we today?

First draft version

The original version of the VSME was published as a draft at the end of 2023. The aim was to create a practical and applicable standard as an alternative to the ESRS for small and medium-sized enterprises.

Publication of the exposure draft

Following an internal revision, the exposure draft of the voluntary standard was published in January 2024.

Public consultation and test phase

Following publication, a consultation phase was initiated in which (financial) companies, sustainability experts and other interest groups were able to provide feedback. The focus was on the user-friendliness of the standards and their practical implementation.

Revision and final publication

After evaluating the feedback, the VSME was revised and finally published at the end of 2024. Significant changes were made to further simplify the application and reduce superfluous requirements.

VSME 3.0 / VSME+ ?

A further revision of the voluntary standard as part of the omnibus proposal is possible, as larger companies with fewer than 1,000 employees will now also use the VSME for their reporting. It remains to be seen how the VSME will develop in the future.

2. the most important changes to the final version

The final version of the VSME includes some significant adjustments:

Modules revised, basic module remains largely the same
The structure of the standard has been streamlined to enable more efficient reporting. However, the basic module remains almost unchanged, as it is considered essential for the collection of basic sustainability information.
In addition, there is the comprehensive module, which replaces the narrative and business partner modules and combines them in terms of content. The integration into a single module is intended to make reporting clearer and more user-friendly.

Elimination of the materiality analysis
In the final version, a materiality analysis is no longer required. This significantly reduces the complexity and time required for companies.

General simplification of requirements
Many detailed requirements have been revised or deleted in order to make the reporting obligations clearer and more practicable.

Reduced scope and simpler structure
The structure of the standard has been optimized so that companies can record and report the relevant information more quickly and efficiently.

3. why the VSME is relevant

Even in its final form, the voluntary standard remains an important tool for small and medium-sized companies that want to systematically integrate sustainability into their reporting. Here are some of the main reasons:

• Ideal for getting started with sustainability reporting
  • The standard offers a clear and simple structure to make it easier for companies to get started with sustainable corporate management.
    
• Promoting transparency
  • By complying with the VSME, SMEs can make their sustainability measures more transparent and thus strengthen the trust of customers, investors and partners.
    
• Fulfilling the requirements of the value chain
  • Large companies in the supply chain of SMEs will increasingly demand sustainability information from their suppliers. The standard helps to meet these requirements proactively.
    
• Marketing benefits and protection against greenwashing
  • The systematic recording of sustainability data can be used effectively for marketing purposes. At the same time, standardized reporting helps to avoid unintentional greenwashing.
    
• Increasing relevance due to omnibus regulation
  • The new omnibus regulation makes the VSME even more important. In particular, companies that were originally subject to the CSRD reporting obligation but have now been removed from its scope are faced with the decision of whether to continue reporting voluntarily. Many of these companies have already started sustainability reporting or see the strategic advantage of preparing for this at an early stage.
  • The voluntary standard offers these companies a practicable alternative for continuing their reporting without having to meet the complex requirements of the full ESRS. This allows them to maintain transparency and continue to meet the expectations of stakeholders and companies in their value chain.

4. how to implement the VSME with Code Gaia

Code Gaia offers companies a user-friendly software solution for implementing the Voluntary Small and Medium Enterprise European Sustainability Reporting Standard. The standard has been fully integrated into the software since last year and enables companies to create their sustainability reports efficiently.

Companies that have already started with ESRS reporting can seamlessly switch to the standard. The Code Gaia software helps to transfer existing data and adapt it to the new requirements of the standard. This means an automatic transfer of relevant ESRS key figures into the VSME format. In addition, a simplified report structure with clear input fields and a direct comparison between ESRS and VSME requirements to identify gaps or optimization potential.

The advantages of reporting with Code Gaia

1. Simple data collection: Companies can adopt existing ESG data or efficiently collect new key figures.
2. Automatic translation of reporting requirements: The software shows which information from ESRS reporting is still relevant and which can be reduced.
3. Structured implementation: Companies receive clear guidelines for creating the report step by step.
4. Export and reporting function: The finished report can be exported as a PDF or in other formats and used for internal or external purposes.

We have summarized how your company can prepare the VSME report efficiently and switch smoothly from the ESRS to the voluntary standard in our compact guide. We have also prepared a mapping to help you find the right place in the standard for content that has already been developed. This guide will help you to make the transition in a structured and efficient way.