Running the six-step
screen.

1. Why VSME exists

The locked wording: EFRAG VSME (2024) is the SME-friendly path. When CSRD was originally scoped, EFRAG drafted a separate VSME standard for entities not in scope. This standard is voluntary but is becoming the de-facto reporting form as larger organisations request sustainability data from their supply chains following the CSRD Omnibus I update.

2. The six steps in the screen

1. Business model: products, services, geographies, and natural/social capital dependencies.
2. Value chain: upstream and downstream dependencies and indirect impacts.
3. Stakeholders: light input from those affected by or affecting the business.
4. Impact identification: positive or negative impacts on people and planet.
5. Financial-effects identification: sustainability risks and opportunities.
6. Materiality scoring: plotting topics on the standard impact-vs-financial matrix.

3. Double materiality, lite

VSME endorses the same double-materiality concept as ESRS but at a lower depth appropriate to SMEs. Both axes (impact and financial) are assessed with simpler scoring scales. The full CrowESG platform (Coming Q3 2026) handles the deeper stakeholder engagement required for in-scope Omnibus reporters.

4. The output matrix

Output is a printable two-by-two matrix with topics plotted by impact and financial materiality scores, exportable for board packs or customer requests.

5. Topics covered

The screen covers climate change, pollution, water, biodiversity, circular economy, workforce, communities, and business conduct, with the option to add bespoke topics.

6. What VSME Light does not do

It does not produce a full ESRS report or satisfy mandatory CSRD obligations for groups exceeding the Omnibus I thresholds. It is a tool for voluntary, defensible screening ahead of full reporting maturity on the CrowESG platform.

7. Use cases that fit

• SMEs receiving supply-chain ESG questionnaires.
• Boards setting year-one materiality views.
• Signalling sustainability maturity to investors.

8. References

• EFRAG, VSME Standard (2024).
• EFRAG, ESRS 1 General Requirements.
• European Commission, Omnibus I Impact Assessment.