Polish micro, small, and medium-sized enterprises (SMEs) now have a new tool for reporting their sustainability efforts. The Ministry of Development and Technology has published the official Polish translation of the Voluntary Sustainability Reporting Standard for Non-Listed Micro, Small, and Medium-Sized Enterprises (VSME). This standard, developed by the European Financial Reporting Advisory Group (EFRAG), was originally published on December 17, 2024.
Purpose of the VSME Standard
The VSME aims to support SMEs in:
- Providing information required by larger entities within their value chain.
- Facilitating access to financing by meeting ESG data requirements of banks and investors.
- Improving management of environmental and social issues, enhancing competitiveness and resilience.
- Contributing to a more sustainable economy.
Structure of the VSME Standard
The VSME consists of two modules:
1. Basic Module (11 Key ESG Disclosures)
This module covers the minimum reporting scope, including:
- B1 – General company information, including the chosen reporting module.
- B2 – Sustainability policies, practices, and objectives.
- B3 – Energy consumption and emissions data (Scope 1 and 2).
- B4 – Air, water, and soil pollution.
- B5 – Impact on biodiversity.
- B6 – Water usage and withdrawal.
- B7 – Circular economy practices.
- B8 – Employment data.
- B9 – Workplace safety and accident records.
- B10 – Wages, pay equality, and employee training.
- B11 – Corruption and bribery issues.
2. Comprehensive Module (9 Additional Disclosures Required by SMEs' Business Partners)
This module expands reporting to include:
- C1 – Business model and company strategy.
- C2 – Practices and initiatives for a sustainable economy.
- C3 – Emission reduction targets (Scope 3).
- C4 – Climate risk analysis and adaptation actions.
- C5 – Gender diversity in management (for companies with over 50 employees).
- C6 – Policies and processes related to human rights.
- C7 – Human rights violations and corrective actions.
- C8 – Revenue from sectors excluded from EU benchmarks.
- C9 – Gender diversity in supervisory boards.
Importance of VSME for Polish SMEs
Although the VSME Standard is voluntary, its adoption can significantly facilitate cooperation between SMEs and large corporations, as well as improve access to financing. Companies implementing this standard will also be better prepared for future ESG reporting regulations.
EFRAG has announced further work on additional materials to support standard implementation, such as guides, digital tools, and educational training.
The Polish translation of the standard is the result of cooperation between the Ministry of Finance, the National Chamber of Commerce, and ESG experts, ensuring its alignment with local regulations and market expectations.
The full text of the standard in Polish is available at:
🔗Polish version
The English version of the standard can be found here:
🔗English version
