VSME for Food and Beverage SMEs: ESG Obligations and Best Practices

What is VSME and why does it concern food and beverage SMEs?

The VS (formerly VSME) is a voluntary ESG reporting standard, built on EFRAG's work and adopted by the European Commission as Delegated Regulation (EU) 2026/1560, in force since 24 September 2026. It helps companies with 1,000 employees or fewer that are not subject to CSRD formalise their environmental, social and governance commitments in a way proportionate to their resources. Built around around forty datapoints in the Basic Module, across 11 disclosures (B1 to B11), VSME provides a structured approach for describing impacts, improving transparency and responding effectively to the requests of partners subject to the CSRD regulation.

For food and beverage SMEs — often at the heart of the supply chains of large groups and retailers — this standard is a strategic tool for: responding to CSRD-subject client CSR questionnaires; improving access to finance through standardised ESG communication; and managing sustainability actions around a recognised European framework.

Current ESG obligations and the role of VSME

VSME remains entirely voluntary: no food and beverage company has a legal obligation to adopt it. However, indirect pressure from CSRD is already being felt: large groups ask their suppliers for ESG data to complete their own reporting. In this context, VSME becomes a way to standardise communication and avoid the multiplication of client questionnaires.

The VS also limits those requests. From financial years starting on or after 1 January 2027, a CSRD-subject client cannot require from a supplier with 1,000 employees or fewer information beyond Annex II of the VS (the value chain cap). The cap only covers requests made for CSRD reporting: traceability data requested under EUDR, for example, remains outside it. For small producers with 10 employees or fewer, the more complex environmental data (B3 energy and GHG, B6 water, B7 waste) becomes optional, and the cap includes no environmental data for them.

The report can be produced in any format (Word, PDF, Excel) without mandatory external audit, but conducting a double materiality analysis is strongly recommended — crossing the company's impacts on environmental and social issues with the ESG risks and opportunities affecting financial performance.

ESG challenges specific to the food and beverage sector

Food and beverage SMEs operate in a dense regulatory context with strong consumer and retailer expectations. Their main ESG challenges relate to: emissions reduction (energy, transport, packaging); water and soil preservation; organic and plastic waste management; food safety and raw material traceability; workplace welfare and human rights across the supply chain; and governance: ethics, transparency, pay equity.

Adopting VSME brings these themes together under a single structure and links them to concrete indicators for tracking progress.

Best practices for effective VSME reporting in food and beverage

1. Structure ESG governance

Identify a CSR lead responsible for coordinating data collection and ensuring alignment with the company's commitments (environmental policy, supplier ethics, etc.).

2. Conduct a simplified materiality assessment

Identify priority issues through double materiality: food process emissions, water consumption per tonne produced, seasonal worker conditions, quality label compliance (BRC, IFS).

3. Centralise data and avoid fragmentation

ESG information typically comes from multiple sources: energy invoices, quality audits, HR data, product sheets. A centralised tool like Ditto helps pre-fill and automate this collection, reducing manual errors and consolidation time.

4. Set indicators and action plans

The VSME Basic module covers all three ESG pillars: Environment: GHG emissions (Scopes 1 and 2), water consumption, recycling rate; Social: health coverage rate, workplace accidents, training; Governance: share of women on the management committee, anti-corruption policies, fiscal transparency.

5. Document traceability and evidence

Archiving supporting documents (certificates, audit reports, invoices) ensures reporting credibility and simplifies answers to CSRD-subject clients.

6. Communicate results transparently

A clear report with quantified indicators improves trust with commercial and financial partners, while strengthening the company's reputation as a responsible actor.

VSME for Food and Beverage SMEs — Key Takeaways