otspot VSME: In the EU, the various ESG laws and sustainability reporting are currently being discussed. The Voluntary Reporting Standard for SMEs (VSME) is one of the top topics and has now been recommended by the EU as the standard for SMEs and medium-sized businesses.
In this article, you will receive a comprehensive guide to selecting VSME software with real practical know-how, so that you can get started with the right tool and build structured processes.
In addition, we share with you our experience from over 700 ESG matchings for small and large mid-sized companies as part of an individual software comparison, where you can efficiently get an overview of the providers that best fit your needs.
If you are already very familiar with VSME, have heard about our free matching service, and want to start the selection process for a tool based on your criteria right away, here’s a shortcut.
When we created the basis for this article at the end of 2024, the ESG landscape still looked very different. The VSME was developed on the basis of the ESRS and gives SMEs the opportunity to present their environmental targets and sustainability efforts in a compact and transparent way. Originally, the VSME was developed for small and medium-sized companies that are not capital-market oriented and do not fall under the reporting obligations of the CSRD, .
However, due to the “EU Omnibus” and the announced reduction of the CSRD criteria, VSME is an ideal framework for many companies with fewer than 1,000 employees to start reporting without having to wait for decisions from Brussels. At the latest since VSME has officially been recommended as a standard by the EU (since the end of July 2025), its relevance has been increasing. As of now, the recommendation still applies to the following groups of companies:
It remains to be seen how the EU’s current discussion around “omnibus regulations” and “stop the clock” will play out, and which additional companies that would otherwise have fallen under the CSRD will use VSME. Starting sustainability reporting in line with VSME makes sense in any case, because the preparatory work can later make it easier to implement necessary CSRD reporting.
Even if SMEs are exempt from reporting obligations, they are increasingly being asked to report on and provide information about their sustainability efforts. This is because investors, lenders, or larger corporate customers in particular are often interested in a company’s sustainability and use it as a key factor, for example when deciding whether to grant a loan. As these requirements continue to grow, the VSME offers a standardized and structured solution to communicate the required information efficiently and in a verifiable manner, and to present it transparently.
If SMEs decide to prepare such reporting, they benefit significantly from the sustainability standard, as they want to secure market advantages and pursue their own environmental goals. A compliant VSME report is therefore highly advantageous due to the following aspects:
Although the VSME is still new, it is already considered the market-leading standard for sustainability reporting for SMEs because, like the CSRD, it is based on the ESRS. This creates a uniform, transparent basis and comparability for all stakeholders. Companies that already decide to report voluntarily now will definitely build a competitive advantage.
The first reports published under the VSME standard were released by, for example, Danone and Trianel.
A VSME report is not as extensive as CSRD reporting, yet especially when you start reporting there are processes, data points and aspects that require explanation and must be taken into account when preparing the report.
The VSME itself is divided into three areas – a Basic Module (B1-B12), a PAT module (Policies, Actions, Targets) and a Business Partner module. Each of these modules has its own requirements and guidelines that must be complied with. Qualified software significantly optimizes the creation of the reporting and makes all processes more time-efficient.
Using a VSME tool offers small and medium-sized companies a wide range of advantages that not only simplify the sustainability reporting process, but also help increase efficiency and reduce costs in the long term. Specialized software automates data collection and analyzes relevant ESG data. This significantly reduces manual effort and minimizes sources of error. Instead of laboriously gathering and verifying information, companies can access a central, user-friendly platform that records and evaluates all required data in real time.
In addition, specialized software ensures structured and standardized reporting that meets common industry requirements and international standards. This is particularly important for companies that regularly have to provide sustainability data for banks, investors or large corporate customers. With a software solution, the entire reporting process is designed to be transparent, traceable and efficient, so that companies can not only respond more quickly to requests for information, but also ensure higher data quality and consistency.
In addition to making reporting easier, the software helps SMEs monitor and optimize resources in a targeted manner. By highlighting inefficient processes and potential for sustainable savings, it actively contributes to reducing operating costs and conserving valuable raw materials. In the long term, a qualified VSME tool strengthens companies’ competitiveness by enabling them to implement sustainability strategies and goals efficiently – a decisive advantage in an increasingly sustainability-oriented business world!
For meaningful sustainability reporting, it is important that supporting software comes with certain features. It is essential that the tool is based on the VSME – a streamlined version of an ESRS tool is a good option as a basis, since the VSME requirements were developed from these standards.
The following functions are covered by qualified VSME software:
Evaluation and analysis of environmental data (e.g., energy consumption, greenhouse gas emissions)
Analysis of social aspects (e.g., working conditions)
Inclusion of governance topics (e.g., internal control mechanisms)
Evaluation of supply chain data (reporting on suppliers’ compliance with environmental and social standards)
Double materiality analysis (relevant for the PAT module and the Business Partner module)
Fact: Using VSME software for reporting is not mandatory. However, given the data points that must be collected, evaluated, and analyzed for complete, compliant reporting, it is always advisable to invest in a suitable VSME tool.
Choosing the right VSME software is crucial for efficient and transparent sustainability reporting. Reliable tool providers not only offer a powerful software solution, but also expertise and long-term support. Here are some key criteria you should consider when selecting software:
1. Intuitive user guidance
At this point, it is important to emphasize that VSME software must not only be powerful, but also intuitive and easy to use. A complicated tool that requires extensive training often creates more problems than solutions.
2. Integration / interfaces
Appropriate interfaces ensure a smooth exchange of sustainability data and other relevant company data. Manual entries are reduced to a minimum and the reporting process becomes significantly more efficient.
3. Expertise and experience
It is essential that the software covers all relevant requirements and is regularly adapted to new standards and regulatory developments.
In addition, the provider should have experience working with SMEs, as they have different requirements than large corporations. A good provider understands the specific challenges and offers practical solutions to simplify sustainability reporting.
4. Support services
In addition to the VSME tool, reliable software providers offer comprehensive support. This includes onboarding workshops, e.g. in the form of digital assistants for quick familiarization with the software, or tutorials for the individual steps toward the first VSME reporting. Especially for SMEs that are dealing with sustainability reporting for the first time, personal support or consulting on an hourly basis is usually a decisive criterion for using VSME software efficiently in the long term.
5. Future-proofing
You should also make sure that the tool provider offers long-term updates and further development. Sustainability standards are currently still very dynamic – including those that currently exist only on a voluntary basis. Future-proof software should be regularly adapted to new requirements so that it can continue to be used in compliance with standards in the years to come.
And as a brief conclusion: Some passages in these articles may read somewhat “heavy” for VSME beginners, and the task seems very complex. In most cases, VSME tool providers have already built up immense knowledge about reporting processes and standards through the CSRD and reduce your entry barriers for VSME many times over. With the selection of the right VSME software, which we will help you with in a moment, the mountain to climb is therefore not as high as it may seem right now.
How much VSME software costs, as with all other ESG tools, depends on your company’s individual needs. For small companies with manageable reporting requirements, an inexpensive basic version is often sufficient. Medium-sized companies with more complex structures or a greater need for data analysis benefit from advanced features and, if applicable, additional data points that they also report voluntarily.
Based on our current provider offers on the Matchilla platform, the costs for VSME software range between 2,500 euros and 11,500 euros per year.
Despite the investment, the software will pay off financially in the long term. By automating data collection and reducing manual entries, workload and sources of error are minimized, saving costs over time. In addition, improved resource utilization and well-founded sustainability strategies deliver economic advantages, for example in the form of better financing conditions or a stronger competitive positioning. Thus, investing in VSME software is not only a relief for reporting, but also a sustainable measure to increase efficiency and reduce costs.
If you decide to prepare VSME reporting for your company and want to use a qualified tool for it, you’ll quickly notice that the search for suitable providers is complex and time-consuming.
The good news: Hours of research aren’t necessary! Because we at Matchilla take care of that for you!
For over three years, the Matchilla team has been screening software providers and tools in the ESG space. You now benefit from this unique market overview as well as the expertise we’ve gained from more than 700 ESG matchings for companies from a wide range of industries: We support you from the VSME software criteria catalogue all the way to the final provider selection and save you a lengthy market research process.
This is how the comparison works: You invest just a few minutes in filling out our Match Assistant – the more detailed, the better. We then individually match the three most suitable providers to your challenges. Finally, you receive our selection in a shortlist – we call it the Matchboard.
The best part: This comparison is free of charge for you, non-binding, and anonymous to the providers.
We look forward to matching with you!
The search for suitable ESG service providers is easy and super fast with Matchilla. Making contact, formulating specifications, and after just a few days the results were there. This way we got information about providers we hadn’t heard of before. A real added value.
Matchilla convinced me with its short and clear processes: Our specific needs are understood immediately, analyzed perfectly, and matched with the right providers in a short time. Matchilla’s platform works quickly, smoothly, and guides you precisely through the service provider selection process.
Matchilla’s approach is brilliant: I no longer have to laboriously research consultancies and software providers and fight my way through many comparison portals—the right providers come to me, so to speak—with just a few minutes of effort. The matching process saves us a lot of resources.
The newly formed ESG software market (which also includes VSME tools) is opaque, and both vendor research and selection are complex, complicated, and time-consuming.
We have already successfully carried out the criteria definition and selection process that lies ahead of you for over 700 companies. In the German-speaking region, this gives us what is probably the best-maintained market overview of ESG software providers. Specifically in the VSME market, we screen CSRD software providers that offer a dedicated module as well as VSME tool providers with a stand-alone solution.
Even companies that have already spoken with several providers and/or already have offers on hand are therefore surprised by even more suitable options that have not yet been researched.
Using the Matchilla platform is free of charge, non-binding, and anonymized vis-à-vis providers for you. Our data matching as well as the personal consultation to select the best software for you is enabled through the providers’ platform fees. In general, we have no paid contractual relationship with you.
Start by filling out the criteria catalog (Match Assistant) for VSME software. This gives us an initial, very good insight into your requirements. Afterwards, we can optionally get in touch with you personally to ask for any missing specifications. This helps us sharpen the selection criteria and incorporate our personal experience in addition to the data matching into the matching process.
From the aggregated input, we create an individual shortlist (matchboard) on the platform with providers that ideally fit your requirements.
Afterwards, you start the vendor conversations and create an individual competition for your needs on Matchilla, making services more comparable and prices negotiable.
Yes, Matchilla is designed so that you can use us as a tendering platform for procurement and receive price quotes directly from providers that comply with compliance requirements. Using the invite function, you share the quotes not only with procurement, but also with all other decision-makers in your company.
Our selection process is based on an efficient interaction of data, algorithms, and a good portion of personal expertise. We don’t release any matchboard without one of our ESG experts adding their input.
We don’t just create your matchboard—we also support you in the vendor conversations, jointly adjust your requirements if necessary when new insights emerge, and are available to you at any time until we have identified the right VSME software for you together.
Think of Matchilla as a neutral sparring partner in this software selection process. Our hope is that your company will use our services for many more searches for service providers in the future.
Try it / us out with no obligation!
Ulli Theves is Head of CSRD and ESG matchings at Matchilla and an expert in technical solutions in the field of sustainability. In MatchZINE, he shares his expertise and regularly publishes current news and useful information on the topic of ESG tech.
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