In a post-Omnibus world, sustainability reporting isn’t one-size-fits-all. In fact, it never was.

If you were preparing for ESRS, you might now be considering VSME instead. But what actually changes - and how do you make the right call?

At SustainLab, we help companies work with sustainability data in a way that supports both compliance and long-term value. This article breaks down the overlap and differences between the ESRS and the new VSME standard to help you get clarity.

What is VSME, and how does it relate to ESRS?

The Voluntary SME Standard (VSME) is designed for small and medium-sized enterprises that want to report on sustainability, without the complexity of ESRS. It’s currently optional - but more companies are looking at it as an alternative to ESRS after recent regulatory developments. 

Read more: The omnibus proposal key changes to CSRD

Meanwhile, ESRS (European Sustainability Reporting Standards) are mandatory for larger companies under the Corporate Sustainability Reporting Directive (CSRD).

For many businesses, the shift from ESRS to VSME isn’t about avoiding reporting - it’s about finding a format that matches your size, capacity, and readiness.

VSME vs ESRS: Same topics, different depth

The content of both standards overlaps: climate, water, pollution, workforce, governance, etc. The main difference lies in the level of detail and whether the reporting is mandatory.

Let’s look at how the mapping works in practice:

1. General Reporting Requirements

• ESRS: ESRS 1 & 2

  
  

• VSME: B1–B2 (Basic), C1–C2 (Comprehensive)

  
  

These sections ask you to describe your business model, sustainability risks, and strategy. ESRS requires structured disclosures; VSME allows for simpler, narrative-based answers.

2. Environmental Sustainability

• ESRS: E1–E5

• VSME: B3–B7 (Basic), C3–C4 (Comprehensive)

  
  

Both standards cover climate change, pollution, water use, biodiversity, and circular economy.
What changes: ESRS requires quantitative data and action plans. VSME focuses on core indicators, with fewer reporting obligations and flexibility if a topic isn’t relevant.

3. Social Standards

• ESRS: S1–S4
  
  

• VSME: B8–B10 (Basic), C5–C7 (Comprehensive)
  
  

Both address topics like working conditions, safety, and fair pay.
Key difference: ESRS includes your entire value chain; VSME focuses on your own workforce.

4. Governance and Business Conduct

• ESRS: G1
  
  

• VSME: B11 (Basic), C8–C9 (Comprehensive)
  
  

Covers anti-corruption, bribery, and diversity in governance.
VSME focuses on legal compliance, with less emphasis on broader ethical or governance structures.

What about Double Materiality in VSME?

Unlike ESRS, the VSME standard doesn’t require a formal Double Materiality Assessment (DMA). Instead, it follows an “if applicable” principle—report only on what’s relevant to your business.

Still, doing a basic materiality assessment can be useful. It helps you identify what matters most—both in terms of your company’s impact on people and the environment, and how sustainability issues affect your business.

This insight helps you:

• Prioritise your work and focus your resources
  
  

• Lay the groundwork for future CSRD requirements

  
  

• Build transparency and trust with stakeholders
  
  

DMA doesn’t have to be a heavy process. Even a simple internal assessment, if well documented, can strengthen your sustainability strategy—and make future reporting easier.

Read more: What is Double Materiality Assessment - and why it's useful for VSME reporting

What to consider before switching from ESRS to VSME

Some companies are required to report under ESRS - if that’s you, switching isn’t an option. But for others, especially those that were preparing in anticipation of CSRD but aren’t legally bound yet, VSME may be more manageable.

Here’s what to think about:

• Legal requirements: Check what still applies after the Omnibus proposal.
  
  

• Resources: Do you have the data, people, and systems needed for ESRS?
  
  

• Ambition: Are you reporting to comply, or to build internal knowledge and stakeholder trust?
  
  
  

The work behind the report still matters

No matter which framework you use, one thing stays the same: Good reporting starts with good data.

We encourage companies to go beyond the checkbox and focus on building the structures that actually support improvement. That means:

• Measuring what matters
  
  

• Understanding your impact
  
  

• Using data to inform decisions—not just to report
  
  

This mindset supports both VSME and ESRS - and makes it easier to move between the two if needed.

SustainLab supports both VSME and ESRS reporting

Our platform is built to support companies at different stages. Whether you're starting with VSME or required to follow ESRS, we help you structure your sustainability data in a way that scales.

As reporting requirements shift, your internal knowledge and systems shouldn’t have to.
We’ll help you build once - and use that work across multiple frameworks.

FAQs:

What is the difference between ESRS and VSME?
ESRS is a mandatory sustainability reporting standard for large companies, while VSME is a voluntary standard designed for small and medium-sized enterprises. The topics are similar, but ESRS is more detailed and data-heavy.

Do small companies have to report under ESRS?
No. Most small and medium-sized companies are not required to report under ESRS, but they may choose to use VSME to share sustainability data voluntarily or because customers request it.

What does VSME reporting include?
VSME includes sections on environmental impact, social standards, governance, and general business information. It is available in a Basic and a Comprehensive version.

Can I switch from ESRS to VSME reporting?
If your company is not legally obligated to report under ESRS, you may choose to use VSME instead. It's important to evaluate based on your business size, goals, and resources.

Want help deciding what framework fits your company best?
Get in touch. We’ll walk you through the options based on your situation.