What is the difference between the VSME standard and the CSRD?

The CSRD is legally mandatory for large companies and uses detailed ESRS standards; the VSME is voluntary, less complex, and tailored to small and medium-sized enterprises[12].

Cluster: VSME Basics • Updated:

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What is the difference between the VSME standard and the CSRD?

Short answer: The CSRD is legally mandatory for large companies and uses detailed ESRS standards; the VSME is voluntary, less complex, and tailored to small and medium-sized enterprises[12].

The CSRD obliges large companies and some listed SMEs to provide comprehensive ESG reporting under the European Sustainability Reporting Standards (ESRS). It requires external assurance and is part of the management report. The VSME was created as a voluntary alternative for unlisted SMEs. It contains simplified disclosures, fewer data points, and does not need assurance[13]. Companies can use it to prepare for future CSRD obligations or to answer stakeholder information requests[5].

Sources: [5], [12], [13] VSME - Frequently asked questions answered (FAQ)

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