VSME Module Basic: A Disclosure-by-Disclosure Walkthrough

On this page
  1. How this walkthrough is structured
  2. B1 — General company information
  3. B2 — Energy
  4. B3 — Greenhouse gas emissions
  5. B4 — Pollution and water
  6. B5 — Workforce
  7. B6 — Governance and policies
  8. Pulling it all together
  9. What comes after Basic

This is the checklist post. If you want the strategic overview of why VSME exists and how Basic compares to Comprehensive, start with our VSME reporting guide. If you need help with the emissions calculation specifically, see our carbon accounting guide. This post walks through every Basic disclosure, in order.

How this walkthrough is structured

For each disclosure area, we cover:

VSME Basic is designed so that most SMEs can complete it from existing records. If you find yourself building new data infrastructure for Basic, you are probably overengineering it.

B1 — General company information

What to report

Where to find it

Your company register filing, annual accounts, and HR system. This is administrative data — nothing to calculate.

Good enough

Copy the exact data from your most recent annual accounts and company register extract. Do not round headcount — use the actual figure.

B2 — Energy

What to report

Where to find it

Utility invoices (electricity, gas), fuel card statements (vehicles), and heating oil delivery receipts. Your energy supplier’s online portal usually has annual summaries.

Good enough

Actual invoiced figures for the reporting period. If your reporting period does not align perfectly with billing cycles, pro-rate the last invoice. Do not estimate from costs — use the kWh or m³ figures directly.

B3 — Greenhouse gas emissions

What to report

Where to find it

Calculated from your B2 energy data using emission factors. See our carbon accounting guide for the step-by-step calculation, factor sources, and common mistakes.

Good enough

Actuals from invoiced energy data multiplied by recognised emission factors (DEFRA or EEA). No third-party verification required. Document which factors you used and their source year.

B4 — Pollution and water

What to report

Where to find it

Environmental permits, emissions monitoring reports, water utility invoices.

Good enough

If your sector is not water- or pollution-intensive (e.g., professional services, software, light retail): state that these disclosures are not material to your operations and briefly explain why. This is an acceptable answer — Basic does not require disclosure of immaterial topics.

If your sector is water- or pollution-intensive (e.g., food production, chemicals, textiles, metals): report actual monitored data from your environmental compliance records. If you hold an environmental permit, the data is already being collected.

B5 — Workforce

What to report

Where to find it

HR system or payroll records for headcount breakdowns. Health and safety incident register for injury data. If you do not have a formal register, your insurer or occupational health provider may have the records.

Good enough

Exact figures from your HR system at the reporting period end date. For health and safety, report actual recorded incidents. If you had zero incidents, report zero — that is a positive data point, not a gap.

B6 — Governance and policies

What to report

Where to find it

Internal policy documents, employee handbook, company website. Many SMEs have these policies embedded in their employment contracts or code of conduct without realising they count.

Good enough

Yes/no for each policy. If you have a policy, provide a reference (internal document name or URL). If you do not have a formal standalone policy but the principle is covered in your employment contract or code of conduct, that counts — note where it is found.

Pulling it all together

The full Basic report is six sections. For most SMEs, the breakdown of effort looks like this:

SectionTypical effortData source
B1 General info2–4 hoursAnnual accounts, company register
B2 Energy4–8 hoursUtility invoices, fuel cards
B3 Emissions2–4 hoursCalculated from B2
B4 Pollution/water1–2 hoursEnvironmental permits or materiality note
B5 Workforce4–8 hoursHR system, H&S register
B6 Governance2–4 hoursPolicy documents

Total: 15–30 hours of data collection, plus drafting and review time.

What comes after Basic

Once Basic is complete and shared with your counterparties, three things typically happen:

  1. Most customers accept it without further questions
  2. Some ask for one or two additional data points (usually Scope 3 or targets) — note these for your next cycle
  3. You have a baseline to improve on annually

If enough counterparties ask for more, that is when VSME Comprehensive enters the picture — along with double materiality and Scope 3 as specific topics.

Frequently asked questions

How many disclosures are in VSME Module Basic?

VSME Module Basic contains disclosures across five areas: general company information, environment (energy and emissions), pollution and water (if material), workforce, and governance policies. The exact number of data points depends on how you count sub-items, but a typical SME completes 25–35 individual data fields.

Do I need to report on every disclosure in VSME Basic?

Almost. General information, energy, emissions, and workforce disclosures are expected from all companies. Pollution and water are reported only if material to your sector — a consulting firm can skip water withdrawal, a food manufacturer cannot.

Can I leave a disclosure blank if I do not have the data?

You can note that data is not yet available and explain why. This is better than omitting the disclosure entirely. Banks and customers will accept a 'data not available — planned for next cycle' note in year one but expect the gap closed by year two.

How long does it take to complete all VSME Basic disclosures?

Most SMEs complete their first VSME Basic report in 40–120 hours of internal effort, spread across four to eight weeks. The time goes to data collection (60%), drafting (25%), and internal review (15%). Subsequent cycles are significantly faster because the data flows are already established.