CSRD Standards for SMEs
The Corporate Sustainability Reporting Directive (CSRD) plays a crucial role in promoting sustainability within business activities in Europe. This directive obliges large companies to report transparently on their environmental impact and social aspects.
The size of a company is determined by possessing at least two of the following three properties:
– a turnover of more than € 50 million,
– a balance sheet total of more than € 25 million,
– more than 250 full-time equivalents (FTEs).
VSME / LSME
To support small and medium-sized enterprises (SMEs) in complying with CSRD and meeting chain requests, two sustainability guidelines have been launched: the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) and the Listed Small and Medium Enterprise (LSME). The VSME offers a voluntary reporting standard for smaller companies, while the LSME is mandatory for listed SMEs.
Through the implementation of these sustainability guidelines, companies can not only comply with legal requirements, but also contribute to more sustainable and responsible business practices. This will not only strengthen the reputation of companies, but also have positive effects on the environment and society as a whole. Complying with the CSRD standards is therefore an important step towards more sustainable and ethical business practices within SMEs. We at Cooperate Green are also happy to help you with the implementation of the VSME or LSME. [Contact us for our availability.]
VSME
The non-binding VSME standard is specifically designed to support non-listed SMEs in meeting Environmental, Social, and Governance (ESG) requests within their value chain. This standard is deliberately simplified, allowing it to serve as an accessible entry-level module for companies that want to gain more insight into sustainability within their organization.
LSME
On the other hand, the LSME standard has been developed in the context of CSRD to provide a standardized approach for listed SMEs. The goal of the LSME is to offer a simplified, but effective, standard that complies with the provisions of the CSRD. This makes the LSME the ceiling of what large CSRD-obligated companies may ask of their chain partners. Due to this “ceiling function”, knowledge of the LSME is certainly also relevant for non-listed SMEs that have to deal with chain inquiries.