How to prepare a VSME/VS report step by step

Do you need to produce your first VSME/VS report and want a clear method to follow? Good news: the VSME/VS standard was designed to be accessible to SMEs, without double materiality or unnecessary jargon. This tutorial walks through the main steps, from choosing the module to consolidation. It rests on a simple principle that underpins the whole exercise: every published figure must be traceable to a source and to supporting evidence. For the full method and the working templates, it complements our reference guide Applying the VSME/VS standard in SMEs and micro-enterprises.

Before you start: why this report?

The four steps of a VSME/VS report: from choosing the module (Basic B1–B11 or Comprehensive C1–C9) to publication. A voluntary approach for SMEs below the CSRD threshold (1,000 employees and €450 million).

A VSME/VS report is rarely produced “for the fun of it”. In practice, it responds to a request: an ESG questionnaire sent by a customer, a request from your bank, or a criterion in a call for tenders. Identifying this trigger before you start keeps you from doing too much: you will know which information is actually expected, and how far to go. If your starting point is a request from a contracting customer, our page on the value chain and the value chain cap will help you define what can legitimately be asked of you.

A useful reminder: VSME/VS is a voluntary standard. There are no penalties and no filing obligation. You remain in control of the scope and the timetable.

Step 1: choose your module

The standard is organised into two levels. The Basic Module contains eleven disclosures, numbered B1 to B11 (basis for preparation, energy and greenhouse gas emissions, workforce, health and safety, corruption…). It is the common foundation for all companies applying VSME/VS. The Comprehensive Module adds nine further disclosures, C1 to C9 (strategy, GHG reduction targets, climate risks, human rights…). The Basic Module is a prerequisite for the Comprehensive Module: you do not address C1 to C9 without first completing B1 to B11.

How do you decide? Start with the Basic Module alone if your aim is to respond to a standard request and lay solid foundations. Move to the Comprehensive Module if a demanding counterparty – a bank assessing a financing application, or a large group well advanced on its own climate pathway – expects a strategic, forward-looking view. For a detailed understanding of the structure of the two modules, see our pillar page The VSME/VS standard: definition, modules and status.

Step 2: map and collect the data

This is the most hands-on step. Go through the disclosures in the module you have chosen and note, for each one, the data required and where it already sits within your company. Most of the figures already exist: they are scattered across the accounts, payroll, contracts and invoices.

Environment: energy consumption and greenhouse gas emissions, water, waste. Your electricity, gas and fuel invoices are your starting points.
Social: workforce, health and safety, training, pay. This data comes from your payroll software and staff register.
Governance: ethics and anti-corruption practices, any convictions and fines. The information here is partly qualitative (the practices) and partly quantitative (number of convictions, amount of fines).

One principle eases this collection: the “if applicable” logic. A disclosure that is irrelevant to your business – for example a topic that does not arise in your line of work – does not need to be reported for the sake of it. You document what genuinely concerns you, without inventing anything or artificially filling gaps.

If you work with an accounting firm, bear in mind that much of this data is already in your accounting records: that is the whole point of a VSME/VS engagement entrusted to a chartered accountant.

Do you have 10 employees or fewer? The delegated act makes several environmental disclosures in the Basic Module optional (energy and greenhouse gas emissions in B3, water in B6, circular economy and waste in B7). See our page on the VSME/VS standard for details.

Step 3: the data → source → evidence matrix

This is the heart of a robust report, and what distinguishes a credible document from a mere statement of intent. For every figure you publish, keep a three-column working table:

The data: what you publish (example: electricity consumption for the year).
The source: where it comes from (the energy supplier’s invoices).
The evidence: the archived, retrievable supporting document (the PDF of the invoices, filed and dated).

This matrix does not appear in the final report, but it is its backbone. It allows you to answer a verification query without stress, to reproduce the calculation the following year, and to avoid the main pitfall: publishing a figure you could not justify. It is also your best protection against any accusation of greenwashing: every claim is traceable.

Step 4: write and consolidate

Finally comes the presentation. VSME/VS provides a structured framework for gathering the information in the expected order. For a first report, the simplest approach is to start from the free official EFRAG Excel template: it lists the disclosures and guides data entry. Enter each data point validated in step 3, keeping the wording plain and factual. No superlatives, no storytelling: a VSME/VS report persuades through its precision, not its tone.

Consolidation means reviewing the whole document to check that the figures are consistent across sections, dating it and clearly identifying the scope covered (which entity, which year). Keep your working file alongside it: that is what will give the report its value in the eyes of a third party.

How long does it take, and how often?

The first financial year takes the longest, because you need to identify the sources and build the matrix. Once that work is done, the annual update becomes much quicker: you draw the new year’s figures from the same sources. A VSME/VS report should therefore be seen as an asset maintained year after year, not as a one-off project.