A friend’s aunt recently got an email from one of her biggest customers asking for her company’s carbon emissions, broken down by scope, with a two-week deadline. Panicked, she reached out asking what exactly a ‘Scope 3’ meant, and how she could go about measuring it.
She’s definitely not alone, and for anyone outside of the ESG space, wrapping one’s head around all the jargon and abbreviations and just getting everything right, can feel overwhelming. So here’s the short version of why it’s happening and what to do.
Why am I getting this?
Large companies in the EU now have to report on sustainability across their entire supply chain, not just their own operations. That’s the CSRD (Corporate Sustainability Reporting Directive) at work. Since you’re part of their supply chain, their reporting problem just became yours too.
Banks and investors are doing something similar, they need to understand the sustainability profile of the businesses they work with, so the same kind of questionnaire lands from that direction too.
The good news: none of this makes ESG reporting a legal requirement for you. The obligation sits with the big company, not with you. You’re just being asked to help them out.
Why does every questionnaire look different?
Until recently, every large company invented its own version. One customer’s five-tab spreadsheet, another’s 40-question web form, a third’s PDF that uses completely different words for the same thing. If you supply three big clients, you’ve basically got three part-time compliance jobs now.
That’s finally getting fixed.
Enter VSME (your new best friend)
VSME is a voluntary standard built by EFRAG, the same body behind the “official” EU sustainability rules, specifically so SMEs have one format to answer these requests, instead of a different one every time.
It comes in two flavors:
- Basic Module, the essentials most SMEs need: energy use, emissions, basic workforce data
- Comprehensive Module, extra detail for SMEs whose customers want more (climate targets, board diversity, etc.)
Still voluntary, nobody’s forcing you to fill it out.
Your customer can’t ask for more than this anymore
As of a Delegated Act adopted in July 2026, large companies are capped on what they’re allowed to request from SME suppliers, and that cap is set at VSME Basic Module level.
What to actually do
- Check if it mentions VSME. If it does, you can likely reuse a VSME-format report instead of starting from scratch.
- Start with Basic Module data. Most first-time requests don’t need more than this.
- Pull from what you already have. Utility bills and HR records cover more of this than you’d think.
- If this is going to be a recurring thing, a VSME-ready reporting tool saves you from redoing this every time a new request lands. [See how the options compare →]
Quick FAQ
Do I legally have to fill this out? No, but ignoring it can affect the relationship with that customer or lender.
Do I have to use VSME specifically? No, it’s voluntary. But since requests are now capped at VSME Basic Module level, it’s usually the path of least resistance.
Leading SME ESG reporting platforms 
Leave a comment