VSME Standard Explained: What Swiss SMEs Need to Know
Complete guide to the EFRAG VSME standard for Swiss SMEs. What it is, why it matters, and how to get started.
What Is the VSME Standard?
VSME stands for Voluntary Standard for non-listed Small and Medium-sized Enterprises. Developed by EFRAG and adopted as EU Commission Recommendation C(2025) 4984 on 30 July 2025, it provides a proportionate sustainability reporting framework specifically for SMEs.
The key word is voluntary. VSME is not a legal obligation. It is a tool that gives SMEs a structured, standardised way to respond when customers, banks, or investors ask for sustainability data.
Why Does VSME Matter for Swiss SMEs?
Although VSME is voluntary, several forces are making it increasingly relevant:
Supply Chain Pressure from Large Companies
Swiss companies with 500+ employees must report on sustainability since January 2024 (Art. 964a CO), including Scope 3 emissions across their entire value chain. This means they need data from their SME suppliers. The EU Value Chain Cap (expected June 2026) will cap what large companies can request from SMEs at the VSME data points — making VSME the de-facto ceiling.
Bank Lending and ESG Criteria
Swiss banks increasingly incorporate ESG factors into credit decisions. A VSME declaration demonstrates your company understands its environmental and social impact — useful when applying for financing or renegotiating credit terms.
The Planned Swiss Threshold Revision
The Federal Council has opened a consultation to lower the reporting threshold from 500 to 250 employees, which would bring approximately 3,500 additional Swiss companies under mandatory reporting — and increase supply chain data requests to their SME suppliers.
What Does the Basic Module Cover?
The VSME Basic Module contains approximately 46 data points across 11 sections (B1–B11):
| Section | Topic | Examples |
|---|---|---|
| B1 | Basis for Preparation | Company name, revenue, NACE code, employees |
| B2 | Policies | Sustainability policy in place? Reduction targets? |
| B3 | Energy & GHG | Electricity (kWh), heating fuel, Scope 1+2 emissions |
| B4 | Pollution | PRTR reporting obligation |
| B5 | Biodiversity | Operations near protected areas |
| B6 | Water | Water consumption (m³) |
| B7 | Waste | Total waste, recycling rate, hazardous waste |
| B8 | Workforce | Headcount, gender, contract types |
| B9 | Health & Safety | Work accidents, fatalities |
| B10 | Remuneration | Minimum wage, CBA coverage, training hours |
| B11 | Governance | Anti-corruption policies, incidents |
Of these, 27 are mandatory, 15 are conditional ("if applicable"), and 4 are voluntary.
Common Misconceptions
"VSME is mandatory for SMEs." No. It is a voluntary framework. It becomes relevant when someone asks you for sustainability data.
"VSME is the same as ESRS." No. ESRS applies to large companies under CSRD (1,000+ data points). VSME is a simplified version with approximately 46 data points designed for SMEs.
"You need a consultant." Not for the Basic Module. The data points cover information most SMEs already track — energy bills, HR records, waste invoices. A guided tool like QuickVSME walks you through it in under an hour.
Who In Your Company Does This?
For most SMEs, the VSME declaration is completed by the CEO or CFO, with input from:
- The office manager or facility manager (energy data)
- HR (workforce figures)
- The accountant (revenue, balance sheet)
No dedicated sustainability officer or external consultant is needed for the Basic Module.
How to Get Started
- Gather your data: electricity bills, heating invoices, fleet fuel records, HR headcount, waste disposal invoices
- Choose your method: the free EFRAG Excel template or a guided tool like QuickVSME
- Complete the declaration: with data in hand, it takes 30-60 minutes using a guided tool
- Keep evidence on file: upload utility bills and documents for audit readiness
Sources
QuickVSME Team • Sustainability Experts