Maritime ESG Compliance with SASB Standards

🌱 VSME: The User-Friendly Pathway to ESG Reporting for

Smaller Businesses

"Sustainability is no longer a buzzword—it's the backbone of resilient business strategy."

— ESG Advisory Circle, Europe 2024

At Varuna Sentinels BV, we firmly believe that sustainability should be accessible to every business, no matter how big or small. For many small and medium-sized enterprises (SMEs), navigating the complex world of environmental, social, and governance (ESG) reporting can feel daunting.

The Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), introduced by EFRAG in December 2024, is a game-changer for small businesses navigating the fast-evolving sustainability landscape. Tailored specifically for micro, small, and medium-sized enterprises (SMEs) not listed on EU-regulated markets, VSME simplifies ESG reporting—making it practical, proportionate, and powerful.

Let's explore how this streamlined framework empowers smaller enterprises to meet rising demands from stakeholders without being overwhelmed.

What is VSME?

VSME is a voluntary reporting framework designed to help SMEs communicate their sustainability initiatives clearly, credibly, and with less complexity than the mandatory Corporate Sustainability Reporting Directive (CSRD). Launched in December 2024, VSME offers a flexible and proportional system that addresses the unique capacities and challenges faced by smaller enterprises, while enabling them to meet increasing demands from customers, regulators, and investors.

Unlike CSRD, which often requires extensive data and analysis, VSME lets businesses report only what is relevant to their operations and sustainability impact, making it a low-barrier but high-value tool.

🌍 Why VSME? Understanding the Purpose

VSME was designed to:

Whether you're supplying goods to a CSRD-compliant buyer or seeking funding from ESG-conscious investors, VSME offers a guided path to credible disclosure—without the burden of overreporting.

🧩 VSME Structure: Two Flexible Modules

VSME reporting comes in two tiers, allowing SMEs to choose based on their capacity and goals:

1. Basic Module (🟢 Mandatory if you report under VSME)

This module ensures foundational ESG transparency with practical coverage of:

✅ This module is suitable for SMEs with limited resources, offering a clear ESG starting point.

2. Comprehensive Module (🟡 Optional for advanced disclosure)

For SMEs ready to report more in-depth data, this module expands to cover:

🔍 The comprehensive module is ideal for SMEs seeking investor-grade ESG disclosures or preparing for future regulation.

The ''if applicable'' Principle in VSME

Unlike ESRS, in the VSME the double materiality assessment has been replaced with the ''if applicable'' principle. It allows for a simple way to self-assess which disclosures are relevant. Only those datapoints or topics that meaningfully apply are included, and others are omitted without penalty, provided omissions are justified

📌 Reporting Principles That Matter

VSME isn't just a compliance exercise—it's built on principles that ensure trust and transparency. All disclosures must be:

📅 From the second reporting year, comparative data becomes mandatory to support trend analysis.
📎 Consolidated reporting is recommended for SMEs with subsidiaries.
🕵️‍♂️ Sensitive information may be omitted, but the omission must be justified and disclosed.

💡 Why Is VSME Suddenly in the Spotlight?

The EU Omnibus Proposal (2024) has made VSME even more relevant. This reform aims to reduce regulatory burdens while preserving ESG transparency.

A key highlight is the proposed "value chain cap"—a limit on how much sustainability data large companies can demand from SMEs. The VSME becomes the reference point for what's "enough," giving smaller companies more control.

📌 If you're a supplier to CSRD-covered companies or newly out of CSRD scope under the Omnibus proposal, VSME could be your ESG solution.

🚀 4 Key Benefits of Reporting Under VSME

Here's why VSME isn't just a reporting framework—it's a strategic asset:

🔐 1. Risk Awareness = Resilience

VSME guides SMEs to identify material environmental and social risks—such as climate change, supply chain vulnerability, or workforce issues—giving them the tools to mitigate these risks and strengthen operations.

📊 For instance: Disclosing exposure to climate risks forces SMEs to assess how rising temperatures or extreme weather could impact their business continuity.

🌐 2. Readiness to Engage Value Chain Stakeholders

Thanks to the value chain cap, CSRD-covered clients can't overburden you. Reporting under VSME ensures you provide just the right amount of sustainability data to meet buyer and bank requirements—efficiently and credibly.

💰 3. Improved Access to Capital

Banks and investors are increasingly embedding ESG requirements into lending and investment criteria. VSME provides the structure and language to help SMEs articulate their sustainability performance clearly, increasing eligibility for green finance and EU funding.

💶 With up to €50 billion in public/private funds earmarked for sustainable growth sectors, early VSME adoption can position SMEs at the front of the investment queue.

🎯 4. Targeted, Applicable Reporting

SMEs can choose to report only what's applicable to their business, avoiding unnecessary disclosure. This ensures stakeholder-relevant insights without overwhelming internal teams or obscuring core metrics.

📣 Get Started with VSME Today — Powered by Varuna-Sentinels BV

Interested in learning more? Schedule a 30-minute VSME demo with Varuna Sentinels to discover how our VSME solution can simplify and enhance your sustainability reporting.

“Sustainability is a shared journey — and we’re with you every step of the way. 🚢 💼”

🧭 How We Support You with VSME

With Varuna Sentinels BV, you’ll get expert guidance on how to:

Apply the mandatory Basic Module
Add the Comprehensive Module only if your business needs it.
🏢 Collect and organize ESG data the smart way
📄 Align your report with VSME structure — simply and clearly
🔍 Build trust with stakeholders through reliable reporting

📫 Let’s Make ESG Work for Your Business: We make ESG reporting simple, useful, and relevant for SMEs in the maritime and supply chain space.


📩 Email us at contact@varuna-sentinels.com to get started.Together, let’s help your business grow — responsibly ⚓ 🌍