CSRD and the VSME standard: A practical guide for non-EU suppliers
The EU's Corporate Sustainability Reporting Directive requires large EU companies to report on their entire supply chain. The VSME standard defines exactly what they will ask you for.
The EU's Corporate Sustainability Reporting Directive (CSRD) is the most far-reaching sustainability reporting law ever enacted. It requires large EU companies to report on their environmental, social, and governance (ESG) performance — including their entire value chain. For non-EU suppliers, this means your EU buyers will need your data to comply with their own legal obligations.
What is the VSME standard?
EFRAG (the European Financial Reporting Advisory Group) has developed a Voluntary SME Standard (VSME) specifically for SMEs that are not directly subject to CSRD but are in the supply chains of companies that are. The VSME standard provides a simplified set of data points that EU buyers will use to request information from their non-EU suppliers.
The VSME has two modules:
Module B — Basic
A short set of data points covering the most material ESG topics. Suitable for smaller SMEs or those with limited reporting capacity. Covers energy, GHG emissions, water, waste, and basic social and governance topics.
Module N — Narrative
An extended set of data points for SMEs that want to provide more comprehensive information. Includes narrative disclosures on strategy, governance, and stakeholder engagement.
What data will your EU buyers request?
Under the VSME Module B, expect requests for:
- •Total energy consumption (kWh) and percentage from renewables
- •Scope 1 and Scope 2 GHG emissions (tCO2e)
- •Total water consumption (m³)
- •Total waste generated (tonnes) and percentage recycled
- •Number of employees and percentage female
- •Percentage of employees covered by collective bargaining agreements
- •Number of work-related injuries and fatalities
- •Whether you have a code of conduct and anti-corruption policy
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Free CSRD supplier checklist
Download our step-by-step guide to preparing your VSME data for EU buyer requests.