What Is VSME and
Who Needs It in 2026?
VSME (Voluntary SME Standard) has become, in 2026, the most discussed ESG reporting tool for SMEs in Romania. This guide explains, step by step and without jargon, what it is, why you might need it, when the real need actually arises, and which type of company it is relevant for.
What VSME is, explained simply
A "standard form" through which a small or medium company can describe, in a unified EU-wide format, its sustainability footprint: greenhouse gas emissions, resource consumption, how it treats employees, environmental policies, and more. It was finalized by EFRAG (European Financial Reporting Advisory Group) in December 2024 and is officially recommended by the European Commission — not imposed by law — as a voluntary tool for unlisted SMEs.
The key difference from CSRD (the mandatory sustainability reporting regime): CSRD is complex, costly, and mandatory only for large companies; VSME is built specifically for the limited resources of an SME — fewer questions, more lenient materiality thresholds, and an "if applicable" principle that allows omitting a section irrelevant to your activity.
Why you might need VSME in 2026
Your bank asks for ESG data
More and more banks in Romania are integrating sustainability criteria into lending and refinancing decisions. If your bank sends you an ESG questionnaire, VSME is the recognized format that lets you respond without inventing a structure from scratch.
You're a supplier under CSRD pressure
Large companies under mandatory CSRD must also report emissions from their supplier chain (Scope 3). If you sell to such a company, it's increasingly likely you'll receive a request for sustainability data — and VSME is the standardized answer.
You want to differentiate voluntarily
More and more corporate clients and business partners look for proof of genuine sustainability commitment, not just statements. A VSME report is verifiable proof, without the full effort of a complete CSRD report.
When the real need for VSME arises
The most common trigger: a direct request (a bank questionnaire, a form from a large corporate client, due diligence for an investment fund). The second most common: when the company is preparing for a funding round, a significant bank loan, or an acquisition/merger, where investors or the buyer demand ESG transparency. The third: proactive preparation, before receiving a request — companies that anticipate these requests save time and avoid the pressure of a tight deadline imposed by a partner.
2026 note: in May 2026, the European Commission published a draft Delegated Regulation formally embedding VSME into EU law, positioning it as a recommended and standardized voluntary tool for companies with up to 1,000 employees — a signal that VSME is becoming the default reference for voluntary SME ESG reporting in the coming years.
Who it's for — and who it isn't
VSME is built for small and medium enterprises not listed on a stock exchange. Under the draft Delegated Regulation from May 2026, the indicative eligibility threshold is up to 1,000 employees — addressing a very broad range of Romanian companies, from micro-enterprises to mature SMEs.
For very small companies (up to 10 employees), many Basic Module disclosures become optional even within the module itself — an explicit recognition of a micro-enterprise's limited resources.
VSME does NOT apply to large companies under the legal CSRD obligation — these must report under the full ESRS standards, not VSME.
2026 context — why the discussion is intensifying now
The Omnibus I simplification package radically changed the EU sustainability regulation landscape. The European Commission adopted the proposal on 26 February 2025; the EU Council approved the final form of the Omnibus I Directive on 24 February 2026; the directive was published in the Official Journal on 26 February 2026 as Directive (EU) 2026/470 and entered into force on 18 March 2026.
A direct consequence: the CSRD applicability threshold was narrowed to companies with over 1,000 employees AND over €450 million in net annual turnover — removing around 31,000 companies from the mandatory CSRD reporting obligation. Many of these companies, however, remain under pressure from banks, investors or large clients — and turn precisely to VSME as a proportionate alternative.
Basic vs Comprehensive, in brief
| Aspect | Basic Module (B1-B11) | Comprehensive Module (C1-C9) |
|---|---|---|
| Who it's for | Any unlisted SME wanting a minimal, complete report | SMEs with complex supply chains or investor pressure |
| Reporting condition | Can be reported independently | Only after the Basic Module is fully completed |
| Emissions data | Scope 1 & 2 + energy consumption (B3) | Extended GHG data, including Scope 3 elements |
| Workforce | Basic characteristics, health/safety, remuneration | Additional value-chain and community data |
| Other topics | Pollution, biodiversity, water, waste, anti-corruption | Strategy, climate financial risks, human-rights policies |
| "If applicable" principle | Applies per individual disclosure | Applies, but the module remains more detailed overall |
How to get started — 5 simple steps
- Check if one of these situations applies to you — bank, large client under CSRD, or a wish for voluntary differentiation.
- Assess what data you already have — Scope 1&2 emissions, environmental policies, basic employee data.
- Identify what's missing from the 11 disclosures of the Basic Module (B1-B11).
- Collect the missing data, applying the "if applicable" principle to omit what isn't relevant to your activity.
- Structure the report in the standard VSME format — ready to send to the bank, client, or investor who requested it.
For the Scope 1 and Scope 2 emissions data needed at point B3, you can use our calculator on the homepage. For full VSME report preparation, see our dedicated service.
Frequently asked questions about VSME
How do I know if my company needs VSME?
The three most common signals are: your bank asks for ESG data for a loan or refinancing, a large corporate client under CSRD requests sustainability data for its supplier chain, or you simply want to differentiate yourself voluntarily on the market. If none of these signals apply to your company yet, there's no immediate pressure — but the trend is that more and more banks and corporate clients will request it in the coming years.
Is VSME a law I have to comply with?
No. VSME is a voluntary standard recommended by the European Commission, not a legal obligation — unlike CSRD, which is mandatory for large companies that fall under its thresholds. VSME can become a contractual or banking request, but it is not an obligation directly imposed by the state.
How long does it take to prepare a first VSME report?
It depends on the size of the company and how organized the data already is. As a rough guide, the Basic Module can be prepared in a few weeks if the core data — emissions, employee information, environmental policies — is already available or easy to collect.
Does VSME exempt me from CSRD if my company grows?
No. VSME is built for companies below the CSRD thresholds. If your company grows beyond 1,000 employees and €450 million in net annual turnover, you fall under the full CSRD obligation (reporting under ESRS), regardless of any prior VSME reporting.
What changes because of Omnibus I in 2026?
Directive (EU) 2026/470, which entered into force on 18 March 2026, narrowed the CSRD scope, removing around 31,000 companies from the reporting obligation. Many of these companies — and their smaller suppliers — are turning to VSME as a proportionate alternative, while still facing transparency pressure from banks and clients.
Can I prepare a VSME report myself, or do I need a consultant?
The Basic Module is designed to be completed in-house by a small team, especially with a clear guide and core data already available — for example from our calculator on the homepage for the Scope 1&2 emissions required at point B3. For the Comprehensive Module or for a professional review, a specialized consultant can speed up the process and reduce the risk of errors.
Prepare for VSME early, not under pressure
CarbonDRI helps you identify if and when you need VSME, and prepare the Basic Module with accurate data, structured according to the EFRAG standard.
Request a free assessment →See also: VSME Service · CSRD & ESG Guide · DMA — Double Materiality