The EU has postponed the CSRD reporting obligation for smaller companies by two years—companies in the “second” and “third wave” will therefore have to report later. At the same time, proposals for new thresholds are circulating, but they have not yet been adopted.
Despite this relief, the pressure remains high: large companies, banks, and business partners continue to expect ESG data along the supply chain. SMEs should therefore not wait, but act proactively. This brings the so-called VSME—the voluntary, simplified sustainability report for small and medium-sized enterprises—more and more into focus. It ensures that SMEs can efficiently and compliantly document their sustainability performance.
But is that enough? Many companies face the challenge of also meeting the growing expectations of investors, customers, employees, and partners.
This is exactly where the VSME+ from Terra Institute comes in.
WHY THE VSME IS WORTHWHILE – AND WHY A “+” MAKES THE DIFFERENCE
The VSME is an important first step: it structures relevant information along the key topics of environment, social, and governance (ESG) while reducing the effort for SMEs. But companies that think strategically know: compliance is not enough.
Many stakeholders—including banks, business partners, supply chain leaders, and public clients—already expect more than the legal minimum. They demand concrete information on climate targets, social impacts, or human rights due diligence. Those who are not prepared risk competitive disadvantages or even exclusion from partnerships.
VSME+ – THE SMART WAY TO HOLISTIC TRANSPARENCY
The Terra Institute has therefore developed the VSME+: an expanded, modular reporting structure that not only meets the requirements of the CSRD, but also integrates further stakeholder expectations. This creates a compact, coherent reporting basis that can be used at the push of a button for various purposes—from bank inquiries to tenders.
YOUR ADVANTAGES AT A GLANCE:
- One report – many purposes: No more multiple data entries or parallel formats
- Security and compliance: Always up to date with regulatory developments
- Efficiency: Clear structure, traceable KPIs, time-saving implementation
- Strategic added value: Sustainability becomes the foundation for future business viability
CONCLUSION: THOSE WHO ONLY MEET THE MINIMUM REMAIN AVERAGE
The VSME is a good start. With the VSME+, companies take the next decisive step: they build trust, reduce effort, and secure strategic advantages in a market that increasingly expects sustainability as a standard.
Let’s develop your VSME+ together—for clarity, impact, and real future security. Contact us now at j.wlasak@terra-institute.eu or secure a non-binding consultation with Julia Wlasak for more information.
Author
JULIA WLASAK
Master Global Studies & MBA Sustainability Management
Pillar Lead Nature & Climate
Julia has many years of experience in sustainability at universities and in corporate settings. Her academic focus is on education for sustainable development. In the private sector, she specializes in sustainability and climate strategies as well as in training and education strategies. Additionally, she is a lecturer at the University of Salzburg.
