What is the EU VSME?
The Voluntary Sustainability Reporting Standard for SMEs (VSME) is a voluntary sustainability reporting framework for non-listed SMEs, developed by EFRAG under a mandate from the European Commission. It was created to address the problem of SMEs receiving inconsistent, excessive ESG data requests from multiple business partners as CSRD imposes mandatory disclosure on large companies and listed firms.
Why Korean Exporting SMEs Should Care
Korean SMEs supplying European large companies or seeking financing from European financial institutions increasingly face ESG data requests from counterparties. In July 2025, the European Commission recommended that banks, investors, and large companies base their ESG data requests on the VSME standard. As this recommendation is adopted as a delegated act, VSME effectively becomes the legal ceiling for EU supply chain data requests — weakening the basis for counterparties to demand data beyond VSME.
Two VSME Modules
Basic Module
A simplified set of reporting items focused on core quantitative indicators: energy and greenhouse gas emissions, pollutants, and workforce data.
Comprehensive Module
Extended indicators (strategy, governance, biodiversity, etc.) to address specific counterparty requirements.
SME Response Strategy
1. Inventory Current ESG Data Requests
Compare ESG questionnaires already received from European partners against VSME items to identify duplicate or excessive requests.
2. Prepare the Basic Module First
Systematizing Scope 1-2 emissions, energy usage, and workforce data first covers most counterparty requests.
3. Negotiate Data Scope with Partners
When partners request data beyond VSME, you can negotiate scope citing VSME as the EU-recommended standard.
4. Map to Korea's K-ESG Guidelines
Mapping overlapping indicators between K-ESG and VSME reduces duplicate reporting effort.
Contact KITIM
KITIM supports exporting SMEs with ESG data system development, responding to overseas partner ESG requests, and K-ESG/VSME mapping. Contact us through [KITIM Contact](/contact) for a consultation.