VSME vs CSRD
VSME and CSRD are both EU sustainability reporting frameworks, but they target different companies. CSRD is the mandatory law for large companies — after the 2025–2026 Omnibus reform, broadly those with more than 1,000 employees and over €450 million turnover — reporting against the detailed ESRS. VSME is the voluntary, lightweight standard for SMEs, usually used to answer data requests from CSRD-reporting customers.
| VSME | CSRD | |
|---|---|---|
| Who it’s for | SMEs (voluntary) | Large companies (mandatory) |
| Mandatory? | No — voluntary | Yes, for in-scope companies |
| Standard | VSME (Basic + Comprehensive) | ESRS |
| Materiality | Simplified | Double materiality |
| Effort | Proportionate / light | Comprehensive |
| Assurance | Not required | Required |
When to use VSME
Choose VSME if you are an SME that needs to answer ESG data requests from banks, investors or customers without taking on the full CSRD burden.
When to use CSRD
You must follow CSRD if your company falls within its post-Omnibus mandatory scope — broadly large EU companies above the size thresholds.
Can you use them together?
They are designed to work together. VSME acts as the proportionate "value-chain cap", so CSRD-reporting companies can collect supplier data via VSME instead of imposing full ESRS requirements on their SME suppliers.
Frequently asked questions
Is VSME part of the CSRD?
No. VSME is a separate, voluntary standard for SMEs. It complements the CSRD by giving smaller companies a proportionate way to answer the value-chain data requests that CSRD-reporting companies make.
Which one should an SME use?
Most SMEs should use VSME, unless they fall directly within the CSRD’s mandatory scope. VSME is lighter, voluntary, and built specifically for smaller companies.