VSME Updated

Jun 10, 2026 1:23:09 PM

VSME Updates – What’s New, and Why Does It Matter?

Following the adoption of Omnibus I, the voluntary sustainability reporting standard VSME has become even more important. VSME was originally developed for SMEs - small and medium-sized enterprises, but Norwegian authorities are now encouraging all companies not covered by CSRD to use this framework for reporting.

This article explains what VSME is, what the updates involve, and how they affect businesses, banks, advisors, and other stakeholders working closely with small and medium-sized enterprises.

Modern Office Conference Room with ESG Whiteboard and Digital Screen

What is VSME/VS?

VSME — Voluntary Sustainability Reporting Standard for non-listed SMEs — is a voluntary European standard for sustainability reporting developed by EFRAG (European Financial Reporting Advisory Group), the same body involved in shaping the ESRS standards under CSRD. The standard was designed specifically for small and medium-sized enterprises (SMEs) that are not directly subject to CSRD reporting requirements, but that still want or need to document and communicate their sustainability efforts. Following the adoption of Omnibus, larger companies are also being encouraged to use VSME. During the summer, VSME is expected to be formally adopted and renamed VS (Voluntary Standard) to clarify that this standard is no longer intended only for SMEs.

VSME offers two modules tailored to different company sizes and levels of maturity:

The Basic module is suitable for micro-enterprises and companies reporting for the first time. It covers the most important ESG indicators across 11 core areas, including energy consumption, greenhouse gas emissions, workforce-related matters, and basic business practices.

The Comprehensive module builds on the Basic module and adds 9 more advanced disclosure requirements. It is intended for companies that want to align reporting more closely with strategy, risk management, and access to green financing.

What’s New — Key Milestones

December 2024: EFRAG published the final standard following a broad consultation process.

30 July 2025: The European Commission adopted VSME as an official recommendation (Commission Recommendation). This means the EU is formally encouraging SMEs to use the standard—and that banks, investors, and large companies requesting sustainability information from SMEs should base those requests on VSME indicators. The Norwegian Ministry of Finance has translated the standard into Norwegian.

December 2025: Omnibus I was adopted, and VSME was proposed as the standard for voluntary sustainability reporting also for companies with up to 1,000 employees and less than NOK 5 billion in revenue—going beyond the original SME definition.

As of June 2026: The standard is in an active implementation phase. EFRAG has launched a digital reporting template tool in XBRL format, guidance documents on climate targets and human rights, and a series of training videos. A final adoption of VS as the reporting standard is also expected during the summer.

Why Is This Relevant for Norwegian Companies?

Even though VSME/VS is voluntary, there are three reasons why your company should take it seriously:

Value chain pressure: Large companies subject to CSRD must report on their value chains. Many will turn to their suppliers—namely you—to collect sustainability data. With VSME, you have a standardized response ready. VS will also establish a “cap” on what kind of information large companies can request.

Access to capital: Strong VSME/VS reporting can open doors to better loan terms and sustainable financing opportunities.
Future-proofing: Companies that get started now can gradually build systems and internal expertise—and avoid the time pressure that comes when requirements become stricter.

Getting Started

VSME is not difficult to begin with. The Basic module is designed to be manageable with limited resources, and EFRAG provides digital tools that make data collection machine-readable and traceable. If you would like help understanding which indicators are relevant for your business, or setting up a reporting structure, please get in touch with us.

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Source: EFRAG VSME Standard (June2026), European Commission Recommendation of 30 July 2025, Norwegian translation by the Ministry of Finance.