- The VS (formerly VSME) lets suppliers answer ESG questionnaires from large CSRD-subject clients in a recognised, consistent format.
- 78% of suppliers to large European groups are already being asked to provide standardised ESG data.
- The VSME Basic module (around forty datapoints across 11 disclosures, B1 to B11) can be completed in about a week using data already available within the company.
- From financial years starting on or after 1 January 2027, a CSRD-subject client cannot require more information than the VS provides from a supplier with 1,000 employees or fewer.
- Adopting VSME reduces reporting duplication and differentiates suppliers positively in tenders.
Understanding the VSME framework for suppliers
The VSME is a voluntary framework developed by EFRAG to help SMEs structure their ESG data. Since 24 September 2026, it has been set out in Delegated Regulation (EU) 2026/1560 under the name Voluntary Standard (VS). It is open to any company not subject to CSRD with 1,000 employees or fewer, listed or not. It is a lighter alternative to CSRD: around forty datapoints in the Basic Module, across 11 disclosures (B1 to B11), no mandatory audit or third-party assurance, and a flexible approach scaled to SME capacity. Our article on what changes with the VS lists the differences from the 2024 EFRAG version.
For a supplier, this framework becomes a strategic tool: it allows a response to ESG questionnaires from large CSRD-subject clients in a recognised format. It strengthens commercial credibility by presenting a clear, consistent picture of environmental, social and governance practices.
Why large companies require ESG data
CSRD requires covered companies to publish comprehensive reporting including their value chain impacts. These actors must therefore collect reliable information from their suppliers: carbon emissions, HR policy, ethics, responsible procurement, governance.
These requests now have a legal ceiling. From financial years starting on or after 1 January 2027, a CSRD-subject company cannot require from a value chain company with 1,000 employees or fewer information beyond Annex II of the VS. The supplier can refuse the extra questions, and the client must flag which questions go beyond the cap. The cap also covers non-EU suppliers, and for suppliers with 10 employees or fewer it includes no environmental data. It only concerns requests made for CSRD reporting: EUDR or forced labour checks, contracts made for other purposes and voluntary assessments such as EcoVadis or CDP that a supplier takes on its own initiative are outside it. Our article on the VS value chain cap explains how it works in practice.
For a large company, having data aligned with European standards like VSME smooths consolidation and improves transparency. For a supplier, this translates into rising expectations: without clear structure, dispersed responses to multiple ESG questionnaires become unmanageable. Adopting VSME means speaking the same language as buyers, reducing duplication and differentiating positively in tenders.
The concrete benefits of VSME for suppliers
- Centralised ESG data: one format covers all information requested by different clients.
- Stronger credibility: the framework comes from EFRAG, responsible for the ESRS standards used by large companies.
- Access to finance: ESG transparency improves perception with banks and investors.
- Internal management: sustainability indicators serve as the basis for a pragmatic, measurable CSR roadmap.
100 ESG Indicators to Know
A reference base to quickly identify the ESG indicators expected by your large corporate clients and prioritise your VSME reporting.
VSME, CSRD and ESRS: how they align
VSME draws directly on ESRS logic — the CSRD technical standards — but in simplified form. Our article on differences between VSME and CSRD details the practical implications for each company profile.
| Element | CSRD / ESRS | VSME |
|---|---|---|
| Obligation | Legal for large companies | 100% voluntary |
| Number of indicators | Around 600 | Around forty datapoints in the Basic Module (B1 to B11) |
| External audit | Mandatory | Not required |
| Double materiality | Mandatory | Recommended |
How to structure a concrete VSME report
VSME operates on two modules:
- Basic module (11 disclosures, B1 to B11): energy efficiency, emissions, waste, working conditions, diversity, governance, responsible procurement.
- Comprehensive module (9 disclosures, C1 to C9): more oriented towards ESG strategy and risks, including double materiality analysis.
The format is free: Word, PDF or Excel. EFRAG provides an Excel template to simplify collection and structuring. SaaS tools like Ditto automate this step by pre-filling certain responses from existing data (e.g. EcoVadis results or HR documents).
Double materiality: structuring strategy rather than ticking boxes
Double materiality combines two perspectives: the company's impact on ESG issues, and the influence of ESG risks on business performance and strategy. For a supplier, it helps prioritise actions that genuinely create value and respond to client expectations — even if VSME does not make it mandatory.
Double Materiality, Issues and IROs
Understand double materiality and identify your priority ESG issues — a practical guide for structuring your supplier VSME reporting.
Integrating ESG into commercial relationships
Large companies now include ESG clauses in supplier contracts (working conditions, anti-corruption, carbon footprint). Presenting a VSME-compliant report allows a supplier to justify compliance and demonstrate documented continuous improvement — replacing dozens of forms with a single, understandable, credible report.
Structure your VSME reporting with Ditto
Our experts help you collect your indicators, structure your report and meet the expectations of your buyers and supply chain partners.
FAQ
Why should a supplier adopt VSME?
Do large companies require VSME from their suppliers?
How long does a VSME report take for a supplier?
Does VSME replace clients' ESG questionnaires?
Is an external audit required for a supplier's VSME report?
VSME for Suppliers — Key Takeaways
| Key element | Explanation | Impact for suppliers |
|---|---|---|
| Nature of VSME | Voluntary ESG reporting framework developed by EFRAG | Homogeneous, credible data structure |
| Link to CSRD | Based on the same principles as ESRS | Data compatible with large client expectations |
| Required indicators | Around forty datapoints across 11 disclosures (Basic module) | Report achievable in a few days |
| Double materiality | Recommended, not mandatory | Strengthens strategic coherence |
| Audit | Not required | Simplifies implementation |
| Value chain cap | From FY2027, CSRD-subject clients cannot require more than the VS from suppliers with 1,000 employees or fewer | Right to refuse questions that go beyond the VS |
| Main benefit | Standardised response to CSRD client ESG requests | Time savings, market access and improved credibility |
