The strengths and weaknesses of VSME from an SME perspective divide opinions. Some see it as a light solution to reporting requirements, while others view it as another flower in the bouquet of bureaucracy. The truth lies somewhere in between.
The voluntary sustainability reporting VSME standard for SMEs is not a bad model, but it is not without its problems. On the contrary, it can offer an SME a clear framework in a situation where sustainability-related information requests and requirements are increasing. For many companies, simply mapping their emissions and key impacts is already a significant step. VSME brings structure to data collection and makes sustainability more systematic. At the same time, it facilitates discussions with financiers and customers, as there is a shared reference framework in place. At its best, it may even reduce individual ESG questionnaires.
However, this is also where the weaknesses emerge.
Double Materiality Analysis in SMEs is not part of the VSME standard, nor does the standard guide a company to reflect on what is most significant in its own business. It also assumes resources and time that many micro and small enterprises simply do not have. When the model emphasizes reporting structure, there is a risk that attention shifts from action to documentation. Companies may spend resources collecting data without the information supporting decision-making. Without a business-driven interpretation, VSME can remain detached from everyday operations—and at worst lead to reporting for the sake of reporting.
Without a business-driven interpretation, VSME can remain detached from everyday operations—and at worst, lead to reporting for the sake of reporting.
In an SME, sustainability is not a separate department. It is not a standalone project. It is a way of conducting daily business: a way of sourcing, producing, serving, and developing. I write more about this in the guide The SME Sustainability Work Pathwhere I explain how sustainability work is built step by step (PDF 360 KB in Finnish, no registration required).
For this reason, VSME works only when it is connected to a company’s everyday operations, actions, and core business. It can be a useful tool, but it is certainly not a ready-made solution. The value of a tool depends on how it is used.
You can also assess the current state of your company’s sustainability work with a free VSME-based self-assessment questionnaire.
Also read: How Should an SME Build its Sustainability Work in Practice?
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