When an SME decides to prepare its first sustainability report under the VSME/VS standard, the first question is almost always the same: which tool should we use? Before comparing paid software, you need to be aware of the official, free resource provided by EFRAG, the body that developed the standard. This digital template, often referred to as “the VSME/VS Excel template”, is an excellent starting point. It does not, however, meet every need. Here is what it actually allows you to do, and the point at which it starts to show its limitations.
An official, free tool aligned with the standard
The VSME/VS was developed by EFRAG and submitted to the European Commission on 17 December 2024, then endorsed by Commission Recommendation (EU) 2025/1710 of 30 July 2025, a non-binding soft law instrument. Alongside the standard itself, EFRAG publishes supporting resources, including a digital template and an XBRL taxonomy designed to make it easier to prepare and share information.
Which version should you use? Since 4 November 2026, the current version of this template has been 2.0.0, which EFRAG now calls the ‘VS Digital Template’ and which has been drawn up in accordance with the voluntary standard, Delegated Regulation (EU) 2026/1560, published in the Official Journal of the EU on 21 September 2026. According to EFRAG, earlier versions, including 1.3.0 dated 11 June 2026, should no longer be used: if your file predates 4 November 2026, download the current version from the EFRAG page. EFRAG states that it will maintain the template, the taxonomy and the Excel-to-XBRL converter until at least the end of June 2027.
Three features make this template attractive for an SME:
- It is free and official. No licence, no subscription: you download the file from the EFRAG website and open it in Excel. EFRAG designed and tested it in Microsoft Excel 365, and warns that with another spreadsheet application or an older version of Excel some functions may be limited or incorrect.
- It mirrors the structure of the standard. The file is organised around the same sections as the VSME/VS: the Basic Module and its eleven disclosures B1 to B11, then the Comprehensive Module and its nine disclosures C1 to C9. There is therefore no risk of overlooking an expected section.
- It paves the way for the machine-readable format. EFRAG’s digital template and XBRL taxonomy make it possible, downstream, to convert the data entered into a structured format that a third party can use: a bank, a contracting customer or an accounting firm.
For a company new to the subject, this structure is invaluable: the file serves both as a data-entry tool and as a checklist of what needs to be prepared. It links naturally to the method for applying the VSME/VS in an SME, where you map your data before reporting it.
Why Excel can be enough the first time
For a micro-enterprise or an SME producing its report for its own use, just once a year, the spreadsheet ticks many boxes. There is very little to learn (everyone knows how to open a spreadsheet), the cost is zero, and the company retains full ownership of its file, with no dependence on an external software vendor. The data to be filled in (energy consumption, headcount, governance information) often fits on a few sheets, and the result can be reviewed, corrected and archived like any other internal document.
In this scenario (one company, once a year, with the report produced by the person who holds the data), the EFRAG Excel template is a perfectly reasonable choice. There is no need to invest in dedicated software to take this first step.
Where the spreadsheet reaches its limits
The limitations appear as soon as use becomes more intensive. They are not specific to this template: they are those of spreadsheets in general, applied to a demanding reporting exercise.
Reliability of data entry
A spreadsheet checks very little of what is typed into it. A missing unit, an overwritten cell, a formula broken by a copy-and-paste: nothing alerts the user. Yet the information in a sustainability report sometimes feeds into decisions, such as a file submitted to a bank or a reply to a customer. Traceability between a data point and its supporting document depends entirely on the rigour of whoever fills in the file.
Working as a team
As soon as several people contribute (the accountant for energy, human resources for headcount, management for governance), version control of a shared file quickly becomes tedious. Who entered what? Which is the latest version? A spreadsheet offers no audit trail, no fine-grained access rights and no formal approval workflow.
Repetition from one year to the next
VSME/VS reporting is meant to be updated every year. Starting again from a static file means copying over the reporting scope, rebuilding the multi-year comparisons and re-checking the calculations. Nothing carries over automatically.
Producing reports at scale
This is the clearest limitation. An accounting firm, or a consultant, supporting ten, twenty or fifty clients cannot reasonably manage that many separate Excel workbooks. Errors replicated across files, no consolidated view, time spent maintaining disparate files: the spreadsheet does not scale. This is precisely where the question of scaling up and standardising production arises, as discussed in our analysis of the VSME/VS as a service line for accounting firms.
A table to help you decide
| Situation | Is the EFRAG Excel template enough? |
|---|---|
| Single SME, one report a year, for its own use | Yes, entirely suitable |
| Collaborative reporting across several departments | Possible, but version control needs to be organised |
| Annual update with history and comparisons | Cumbersome: little carries over |
| Multi-client production (accounting firm, consultant) | No: a structured tool becomes necessary |
Key takeaways
The EFRAG Excel template is the right first step: official, free, aligned with the standard’s B1-B11 and C1-C9 structure, and compatible with the XBRL format downstream. For an SME producing a single annual report, there is often nothing more to look for. Its limitations (reliability of data entry, teamwork, carry-over from one year to the next and, above all, production at scale) are not hidden flaws, but the natural boundaries of a spreadsheet when faced with an exercise that becomes more structured or has to be repeated across several companies.
The spreadsheet is, moreover, just one building block in a wider landscape that ranges from emissions calculators to SaaS platforms. To place each family of tools according to its real target audience and know when to move on, continue with our overview of tools and software for VSME/VS reporting.
Sources and verification — checked on 8 November 2026
Every regulatory statement on this page has been checked against the official text. The references below allow you to verify it for yourself.
- Recommendation (EU) 2025/1710 of 30 July 2025 (endorsement of EFRAG’s VSME), OJEU of 5 August 2025 — text on EUR-Lex. Recital 5 of Delegated Regulation (EU) 2026/1560 provides that it “should be considered as no longer producing legal effects” from the entry into force of that regulation, i.e. on 24 September 2026.
- EFRAG — VSME/VS digital template and XBRL taxonomy, version 2.0.0 of 4 November 2026 (prepared in accordance with the voluntary standard (VS), Delegated Regulation (EU) 2026/1560 published in the Official Journal of the EU on 21 September 2026; it replaces version 1.3.0 of 11 June 2026, which EFRAG says should no longer be used) — EFRAG page.
A question about timing? The progress of the legislation is tracked, with dates, in our regulatory updates.
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