VSME Overview
The VSME (Voluntary Standard for non-listed Small and Medium-sized Enterprises) module in Karomia provides a simplified sustainability reporting experience designed specifically for smaller organizations — with 50% less effort and 100% auditor acceptance.
What is VSME?
VSME is a voluntary, EU-endorsed reporting standard that allows small and medium-sized enterprises to create sustainability reports in a more streamlined way than the full CSRD/ESRS requirements. It protects SMEs from excessive reporting beyond what's mandated. VSME is ideal for:
- Companies not yet required to report under CSRD.
- SMEs in the value chain of larger companies that need to provide sustainability data.
- Organizations that want to start their sustainability reporting journey with a manageable scope.
Why stakeholders need your VSME report
- Banks — Required under EU rules to disclose ESG risks in loan portfolios, including SME exposures.
- Customers — Companies with climate targets increasingly require supplier ESG data.
- Insurers — Solvency II mandates long-term ESG risk modeling incorporating SME data.
Key features
- Guided setup — Step-by-step wizard to configure your report scope.
- Simplified structure — Fewer disclosure requirements than full ESRS.
- Pre-defined subtopics — Curated selection of relevant topics for SMEs.
- Rich text editor — The same powerful editor used in full reports.
- Document management — Attach supporting evidence.
- PDF export — Generate professional reports.
VSME vs. CSRD reporting
| Feature | VSME | CSRD (Full) |
|---|---|---|
| Target audience | SMEs | Large companies, listed companies |
| Mandatory? | Voluntary | Mandatory for in-scope companies |
| DMA required? | Optional | Required |
| Number of disclosures | Reduced set | Full ESRS set |
| Complexity | Lower | Higher |
| Guided setup | Yes | Assessment-driven |
Getting started
- Creating a VSME report — Start your first VSME report.
- Report setup — Configure scope and subtopics.
- Writing your report — Draft your content.