VSME REPORTING

Prepare a value-creating VSME reporting

At NORD advise, we are experts in sustainability reporting according to the VSME standard. We are also experts in creating reports that strategically and communicatively support the entire purpose of voluntary reporting, namely to create value. The value-creating sustainability report can support the attraction and retention of customers, recruitment of employees, increased valuation during sales, etc.

SUSTAINABILITY REPORTING

Get help with your sustainability reporting

We assist in the entire or parts of the process, from data collection and calculation of emissions, to the strategic narrative and setup of a sustainability report according to your visual identity. We prepare your sustainability report tailored to your level of ambition, whether it is to be used by a broad group of users and as part of broader communication and marketing, or simply to ensure minimum reporting that meets the needs that value chain actors may have for sustainability information.

Compliant minimum VSME reporting

Covers information needs from customers and banks.
  • Identification of relevant ESG KPIs in the VSME standard
  • Data collection, data management and consolidation
  • Carbon accounting (scope 1 og 2)
  • Documentation package for the auditor
  • VSME checklist
  • Compilation of the VSME report

Strategic sustainability reporting

Report for use in broader communication and marketing.
  • Identification of relevant ESG KPIs in the VSME standard
  • Data collection, data management and consolidation
  • Carbon accounting (scope 1 og 2)
  • Documentation package for the auditor
  • VSME checklist
  • Reduction targets for scope 1 og 2
  • Identification of key stakeholders
  • Identification of material risks, opportunities and focus areas
  • Prioritization of material risks, opportunities and focus areas
  • Written communication of strategy to stakeholders
  • Compilation of the sustainability report

Preparation ahead of VSME reporting

When to prepare a VSME report

With the Omnibus simplification proposal from the European Commission, the number of companies required to prepare a sustainability report under the CSRD is expected to decrease significantly. Therefore, for most companies, sustainability reporting will become a voluntary choice, as will the choice of format, content, and its connection to the annual report.

When there are no legal requirements for VSME reporting or sustainability reporting in general, a good question to ask is whether it makes sense to voluntarily allocate resources to prepare a sustainability report. To answer this question, current and future expectations from stakeholders and business relationships must be understood so that the risk of being deselected as a company can be assessed and managed correctly.

Before initiating voluntary sustainability reporting, we recommend conducting a proper relevance analysis of the need so that decisions about the reporting format are made on an informed basis. If relevant, the content of the sustainability reporting must be defined and scoped, and this is where the VSME reporting standard comes into play. As the EU’s voluntary standard, it plays a significant role in meeting information needs in value chains and among investors.

A VSME report can provide a structured approach to sustainability reporting, and for many companies in Denmark, using the VSME standard as the foundation for a voluntary sustainability report will be an obvious choice.

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Learn more about the EU taxonomy and how it helps guide businesses towards sustainable practices and green investments

What is VSME?

The VSME standard is a reporting standard published by EFRAG that can be voluntarily used by companies wishing to prepare a sustainability report.
The standard consists of two modules: the Basic module and the Comprehensive module.

Basic module: Contains minimum requirements regarding information that must be provided by all companies choosing to follow the standard. This module includes 11 disclosure requirements.

Comprehensive module: An optional module consisting of an additional nine disclosure requirements, in addition to the 11 disclosure requirements in the Basic module.

Below, the disclosure requirements are presented in summary form.

See the difference between the two VSME reporting modules

Compared to CSRD, VSME is much more manageable in terms of both quantitative and qualitative information. Most quantitative information can even be found in either the accounting system or the payroll system. For this reason, it is rarely necessary to purchase additional systems, etc.

VSME reporting as compliance or marketing?

A VSME report can be a valuable tool for companies looking to enhance their competitiveness, create commercial opportunities, and attract new employees.

Initially, it must be determined whether the report is prepared to simply meet the information needs of customers, other value chain actors, and partners, or whether it should be used as part of broader communication and marketing. The format, content, and scope of the report will consequently be very different, as will the associated costs.

If a minimum report is desired, it will have the character of a data package, and layout and strategic storytelling can be minimized. Such a report can be prepared quickly and easily.

Conversely, a VSME report intended for broader use in the company’s communication and marketing towards customers, potential employees, etc., will require a greater effort. It also requires a special focus on compliance with marketing laws, as even seemingly harmless green claims can lead to accusations of greenwashing.

 

Is an auditor’s statement necessary in VSME reports?

Unlike the CSRD’s requirement for an auditor’s statement, the VSME does not require an auditor’s statement. Depending on how you intend to use the VSME report, the group, and the number of users, it may, however, be a good idea to voluntarily include an auditor’s statement. This increases the reliability of the information and thus the value of the report. The obvious choice of statement would be an ISAE 3000 statement with limited assurance, which, unlike an audit, is a lighter review by the auditor.

At NORD advise, we have developed the tool used by a large number of Danish audit firms when issuing statements on VSME reports. We can therefore help create a documentation package that ensures an efficient process with the auditor, if this is relevant.

VSME software

Is VSME software necessary for a VSME sustainability report?

A question we often encounter is whether reporting under the VSME standard requires specific reporting systems or software, and many companies experience being contacted by VSME software vendors.

At NORD advise, we do not sell software and have deliberately not entered into partnership agreements with any providers. We have chosen this to be able to provide independent advice on software selection.

Regarding the need for VSME software, for the vast majority of companies, it will be an unnecessary cost that neither improves the report nor reduces the time spent. The VSME standard consists of very few disclosure requirements, and data handling in the process can easily be managed in, for example, Excel. Most of the quantitative information can be found with a few lookups in the accounting and payroll systems.

EU Taxonomy Regulation

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