VSME+: towards extra-financial reporting that is really useful for companies

For the past two years, the European extra-financial reporting ecosystem has been experiencing a moment of recalibration. After the initial ambition of the CSRD, its scope was reduced, and the idea of mandatory reporting for SMEs was abandoned. At the same time, the European Commission has accelerated a much more pragmatic project: VSME.

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The objective was clear: to offer VSEs/SMEs a simple, legible and proportionate framework.

But there is already a reality: VSME alone is not enough.

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Why CSRD failed for SMEs

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The CSRD had a strong promise: to structure extra-financial information, to strengthen transparency and to harmonize practices at the European level.

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But this ambition has come up against three major limitations:

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1. Complexity incompatible with small structures

Up to 1,200 data points to cover ESRS.

A third report to be produced.

Inordinate integration costs.

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2. Unrealistic deadlines

The majority of SMEs were simply not in a position to absorb this burden in such a short period of time.

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3. A lack of alignment with real uses

Neither banks, nor insurers, nor contractors needed such a level of granularity in the vast majority of cases.

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The setback of the “CSRD PME” project is not a political failure: it is the recognition of a poor calibration.

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VSME: a major advance... but limited

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The VSME, published in 2025 by EFRAG, is an excellent entry point:

• 27 disclosures,
• a short and legible document,
• a common language for European SMEs,
• more realistic adoption.

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But simplicity comes at a price.

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Its limits are already visible:

• Too little data for sensitive sectors (defense, energy, food, technology, etc.).
• No territorial logic (regional ecosystems, clusters, industrial dynamics).
• Not very usable for banks/insurers.
• No granularity on value chains.

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The VSME fulfills its role: to initiate the process. But it doesn't offer anything to actually drive.

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VSME+: add 30 really useful data

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At ASCEND Tech, we made a simple choice: only add complexity if it creates value.

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That is the philosophy behind VSME+.

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VSME+ = VSME + 30 targeted data points

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These 30 data points are suitable for:

• a territory (region, agglomeration, industrial center),
• and/or to a sector (BITD, mobility, education, metallurgy, textiles, etc.).

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And why 30? Because it is the balance between:

• a reasonable effort for businesses,
• real operational usefulness,
• a controlled cost,
• the possibility of automating and comparing thanks to Harnest.

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Example: VSME+ for companies in the BITD des Deux-Sèvres

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As part of the Local Defense Industrial and Technological Base, we have defined 30 data points to assess:

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1. Supply chain robustness

• % of critical components of extra-EU origin
• dependence on a single supplier
• surrogate capacity
• reconfiguration time in case of breakage
• Upstream mapping in N-1/N-2 levels

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2. The challenges of energy and safety

• exposure to geopolitical tensions
• carbon-free electricity available locally
• vulnerability to outages/load shedding
• cyber compliance (NIS2)

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3. Territorial impacts

• industrial jobs by group
• local training available
• anchoring in regional arrangements
• exposure to local environmental risks

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Results:

• Businesses have a useful diagnosis,
• the principals of a shared language,
• and funders of information that can be immediately used.

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All activated automatically in Harnest.

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A tool designed for vertical and horizontal dialogue

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VSME+ unlocks two essential types of dialog:

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The vertical dialogue - the value chain

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Contractors → subcontractors → suppliers → N-1/N-2.

All speak the same language, without requiring 400 pages of ESRS.

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Thanks to a common base, no more:

• multiple questionnaires,
• the different Excel files according to each client,
• unnecessary back and forth.

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Horizontal dialogue - banks, insurers, territories

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With 30 targeted data points, a banker or an insurer can:

• understand the risks at a glance
• integrate data into its internal models,
• reduce its requests for information,
• adopt a shared language at the territorial level.

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VSME+ as operational infrastructure

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VSME is laying the foundations. VSME+ is the natural extension: proportionate, useful and adapted to sectoral and territorial realities.

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With Harnest, VSME+ becomes:

• interoperable,
• usable by all stakeholders,
• and a collective management tool.

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We are convinced that VSME+ can become a European standard for structuring supply chains and making extra-financial exchanges more fluid, without unnecessary complexity.

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If you want to develop a VSME+ for your sector, your territory or your cluster, we would love to discuss it.