What is VSME ESRS and how can it help your company?

The VSME ESRS (Voluntary Sustainabilit y Reporting Standards for SMEs), developed by EFRAG (European Financial Reporting Advisory Group), is a voluntary sustainability reporting model designed specifically for small and medium-sized enterprises (SMEs) and although it is not compulsory, it is a good exercise in preparing for future regulations.

This standard offers a simplified approach for smaller companies to report environmental, social and governance (ESG) information in a structured way and in line with European requirements, such as the CSRD (Corporate Sustainability Reporting Directive). Embora o VSME ESRS seja voluntário, ele pode ser adotado por PMEs que queiram iniciar o processo de compliance ou responder a solicitações de clientes e parceiros na cadeia de valor. Para muitas PMEs, a sustentabilidade ainda é um desafio, pois não possuem estratégias nem processos claramente definidos para lidar com as exigências regulamentares e do mercado. Isso pode dificultar o atendimento de pedidos de clientes que necessitam de informações relacionadas à cadeia de valor ou a preparação para regulamentações futuras. O VSME ESRS surge como uma ferramenta prática para preencher esta lacuna, permitindo que as empresas comecem a estruturar a recolha e reporte de dados ESG, mesmo sem uma base robusta já estabelecida. O VSME ESRS cobre os principais âmbitos da sustentabilidade: impacto ambiental, condições sociais e práticas de governança. Algumas métricas e exemplos de KPIs (Indicadores Chave de Desempenho) relevantes incluem: Ambiental:

1. GHG (Greenhouse Gas) Emissions – Tons of CO₂ equivalent emitted directly and indirectly.
2. Renewable Energy Consumption – Percentage of energy used that comes from renewable sources.
3. Waste Management – Percentage of waste recycled versus sent to landfill.
4. Water Consumption – Total amount of water consumed in cubic meters.
5. Impact on Biodiversity – Number of initiatives to protect biodiversity in areas impacted by the company.

Social:

1. Gender Diversity – Percentage of women in leadership positions and in the total workforce.
2. Employee training – Average hours of training per employee per year.
3. Talent Retention Rate – Percentage of employees who stay with the company for more than one year.
4. Safety at Work – Number of incidents or accidents per million hours worked.
5. Community Impact – Investments in community initiatives, such as local partnerships or donations.

Governance:

1. Presence of a Code of Ethics – Existence of formal ethics and compliance policies.
2. Percentage of Risk Policies Implemented – Number of active risk management policies.
3. Regulatory Compliance – Number of regulatory violations or sanctions received.
4. Transparency in Remuneration – Publication of remuneration criteria for executives and employees.
5. Percentage of Independence of the Board of Directors – Percentage of independent members on the board.

The VSME ESRS not only facilitates reporting, it also serves as a starting point for implementing a sustainability strategy. By adopting this model, SMEs can begin to establish internal processes to collect and analyze ESG data, identify priority areas for improvement and align themselves with the expectations of stakeholders and regulators. It’s a practical tool for evolving gradually, without the need for an immediate transformation. Another important benefit of the VSME ESRS is that it can be used as a communication tool with customers who need information about the value chain. Many large companies covered by the CSRD require their suppliers to provide ESG data. VSME ESRS helps SMEs to provide this information in a structured way and in line with recognized standards, strengthening business relationships and creating opportunities for collaboration. The VSME ESRS is a simplified model that allows SMEs to take the first steps on the sustainability and compliance journey, whether to meet direct or indirect legal obligations or to position themselves more strategically in the market. Adopting this standard is an opportunity to start structuring processes, gain experience in ESG reporting and meet the expectations of customers and partners, preparing for a future where sustainability will be increasingly central to business success.