Create a VSME Report
The VSME (Voluntary Sustainability Reporting Standard for SMEs) is an EU-endorsed simplified reporting standard for small and medium-sized enterprises. It delivers approximately 50% fewer disclosures than full ESRS, while producing a report that is accepted by banks, investors, and value-chain partners.
VSME is relevant for:
- Companies not yet required to report under CSRD.
- SMEs asked by a customer or investor to provide sustainability data.
- Organizations that want to start their sustainability reporting journey with a manageable scope.
Why stakeholders request your VSME report
- Banks — Required under EU rules to disclose ESG risks in their loan portfolios, including SME exposures.
- Customers — Companies with climate or sustainability targets increasingly require supplier ESG data.
- Insurers — Long-term ESG risk modeling under Solvency II incorporates SME data.
Before you start: document requirements
Having the right documents ready before you create your VSME report significantly reduces the manual editing needed after the first AI run.
Must-have
| Document | Notes |
|---|---|
| Annual report | Must match the VAT number and reporting period of the entity. Include the "sociale balans" / "bilan social". |
| List of all sites | All locations with physical addresses (offices, warehouses, factories). |
| Waste registry / environmental logs | Records of waste per category for the reporting period ("afvalstoffenregister"). |
| Social balance sheet — detailed version | Workforce composition, contract types, gender distribution, training data. Usually in the annual report. |
| External/internal prevention service reports | From your occupational health and safety provider (e.g., Idewe, Mensura, Attentia, Securex, Liantis). |
| Pay-gap information | From HR or your social secretariat partner. |
If available
| Document | Purpose |
|---|---|
| Business and sustainability strategy | How the company creates value and integrates sustainability |
| Risk management policy | ESG risk identification and mitigation |
| Internal policies and targets | HR, H&S, ethics, diversity, data protection policies |
| Environmental permits | Pollutant data and regulated substance management |
| Sustainability certifications | ISO 14001, B Corp, EU Ecolabel, CO₂ Neutral, etc. |
| Carbon footprint reports | GHG Scope 1 & 2, energy consumption breakdown |
| Climate hazard assessments | Physical risks and adaptation actions |
| EPC statements | Energy Performance Certificates for buildings |
| Audit reports | Internal and supplier sustainability audits |
Create a new VSME report
- Navigate to the VSME section from the main navigation.
- Click New Report.
- Enter a report name and select the reporting period.
- Run through the setup wizard:
- Define scope — Which parts of the organization and geographic areas are included.
- Select assessment (optional) — Link a Karomia DMA if available. Material topics will inform the report structure.
- Company context — Organization name, industry, employee count, key locations.
- Report settings — Reporting period, language, branding.
- Select subtopics — Choose which ESG subtopics to include. Karomia guides you on the most commonly selected topics for similar companies.
You can return to the setup at any time to adjust selections. Changes to subtopics update the report structure accordingly.
After setup: same flow as CSRD
Once set up, a VSME report follows the same completion flow as a CSRD/ESRS report:
- Upload your documents (same process as Upload documents — use the General and Environmental/Social/Governance tabs as relevant).
- Review the AI-generated answers — see Review AI output.
- Complete and validate all data points — see Complete data points.
- Export your report — see Export and publish.
You can duplicate an existing VSME report to use as a starting point for a new reporting period, retaining the structure and any still-relevant content.