VSME vs GRI vs CDP: Which Sustainability Framework for SMEs?

If you are an SME choosing a sustainability reporting framework, you have probably encountered three names: VSME, GRI, and CDP. They serve different purposes, require different levels of effort, and are designed for different audiences. This guide helps you choose.

For a detailed look at VSME specifically, see our VSME reporting guide. For the broader question of whether you need a sustainability report at all, start with our starter guide.

The three frameworks at a glance

VSME (EFRAG)

What it is: A voluntary sustainability reporting standard published by EFRAG, designed specifically for non-listed SMEs.

Who it is for: SMEs responding to ESG data requests from banks, large customers, and investors in the EU ecosystem.

What it requires:

• Module Basic: predefined disclosures on energy, emissions (Scope 1+2), workforce, and governance policies. Producible from existing data.
• Module Comprehensive: adds materiality assessment, targets, Scope 3, value chain disclosures.

Effort for first cycle: 40–120 hours for Basic. 120–300 hours for Comprehensive.

Cost: Free. The standard is publicly available.

GRI (Global Reporting Initiative)

What it is: The most widely used global sustainability reporting framework. GRI Standards are topic-specific and modular.

Who it is for: Organisations of any size that want to report on their sustainability impacts for a broad stakeholder audience. GRI is used by multinationals, NGOs, public institutions, and some large SMEs.

What it requires:

• Materiality assessment to determine which GRI Topics to report on
• Universal Standards (GRI 1, 2, 3) plus Topic Standards for each material topic
• Detailed disclosures including management approach, quantitative indicators, and stakeholder engagement

Effort for first cycle: 200–500+ hours for an SME, depending on scope. GRI does not have a simplified SME module — you use the same standards as large companies.

Cost: Standards are free to access. Many organisations hire consultants for their first GRI report (€10,000–50,000).

CDP (formerly Carbon Disclosure Project)

What it is: A disclosure system that runs annual questionnaires on climate, water, and forests. Responses are scored and made available to investors and procurement teams.

Who it is for: Primarily large companies and their supply chains. SMEs typically encounter CDP through the supply chain programme — a large customer nominates you and you receive a questionnaire.

What it requires:

• Annual questionnaire completion (climate is the most common)
• Governance, strategy, risks, metrics, and targets sections
• Scope 1, 2, and ideally Scope 3 emissions data
• Verification is not mandatory but improves your score

Effort for first cycle: 80–200 hours for the climate questionnaire. The questionnaire is extensive and designed for larger organisations.

Cost: Free to respond. Scoring and benchmarking are free. Some companies pay for advisory support.

Head-to-head comparison

Decision guide

Choose VSME if:

• You are a non-listed SME in Europe
• Your primary audience is EU banks, customers under CSRD, or investors
• You want to start with the minimum viable report and expand later
• You have limited time and no sustainability team
• Your counterparties have asked for ESG data rather than a specific framework

This is the right choice for 80% of SMEs. Start with VSME Basic.

Choose GRI if:

• You have stakeholders who explicitly require GRI-format reporting
• You operate globally and need a framework recognised outside the EU
• You are a larger SME (100+ employees) with resources for a more comprehensive report
• You want to report on a wide range of sustainability topics beyond what VSME covers
• You have already done VSME and want to broaden disclosure

GRI makes sense as a second-cycle expansion or when stakeholders specifically ask for it.

Choose CDP if:

• A large customer has nominated you through CDP’s supply chain programme
• You want investor visibility and benchmarking on climate performance
• You already have robust emissions data (Scope 1, 2, and some Scope 3)
• Your industry uses CDP scores in procurement decisions

Respond to CDP when asked. Do not proactively pursue it before you have VSME Basic in place.

What about TCFD, ISSB, and ESRS?

These come up in framework discussions but serve different purposes:

• ESRS is the mandatory standard for large companies under CSRD. VSME is derived from ESRS — you do not need both.
• ISSB (IFRS S1/S2) is the global investor-focused sustainability standard. Relevant for listed companies, not typical SMEs.
• TCFD is now superseded by ISSB. Its climate risk framework influenced CDP, ESRS, and ISSB.

As an SME, you do not need to engage with these directly. VSME already incorporates the relevant elements at a proportionate level.

The mapping advantage

Because VSME is derived from ESRS, and ESRS has mapping tables to GRI and ISSB, your VSME data can be translated to other frameworks with moderate effort. This means starting with VSME does not lock you in — it gives you a reusable data foundation.

The typical progression:

1. Year 1: VSME Basic — answer immediate bank and customer requests
2. Year 2: VSME Comprehensive or GRI mapping — if stakeholders ask for more
3. Year 3+: CDP response, SBTi targets, broader ESG programme — as business maturity grows

Start with the framework that matches your current need. For most SMEs, that is VSME. Everything else builds on it. For the cost and timeline of getting started, see our guide on sustainability reporting cost and timeline.