VSME: a sustainable opportunity for SMEs?

VSME: a sustainable opportunity for SMEs? – “6 Min. pour comprendre” with Pierre Léonard. Midoricast : Podcast #213

La VSME: leave a voicemail message for Pierre Léonard with a question, a comment, encouragement or thanks here!

In this episode of the “Six minutes pour comprendre” series, Pierre Léonard, a facilitator in sustainable development, sheds light on an acronym that still frightens many SMEs: la VSME. Behind this seemingly complex term lies a strategic opportunity for unlisted companies: a voluntary sustainability reporting standard, designed to be accessible, useful… and above all, promising for the future.

• Why is the VSME crucial for small structures?
• What advantages can be gained from it – in terms of competitiveness, access to public procurement, financing or attractiveness for talent?
• How to prepare for it serenely without exhausting your energy?

Pierre answers all these questions with clarity, supported by concrete examples.

An episode not to be missed if you are a manager, executive or CSR officer of an SME, and you want to transform tomorrow’s obligations into today’s opportunities.

🔗 As a bonus, a mention of a free tool to take the first step: the Business Impact Assessment offered by B Corp.

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For deaf or hard-of-hearing individuals, we offer a transcript at the end of the article. We need your donations to ensure the necessary resources for these productions… via Triodos — IBAN : BE73 5230 8097 4160 — BIC : TRIOBEBB. Thank you!

Useful links for this episode:

• The Business Impact Assessment offered by B Corp
• Pierre Léonard’s Linktree
• La Fresque de l’économie circulaire (The Circular Economy Fresco – French)
• Website of The Podcast Factory Org asbl-vzw
• Join the Kaya coalition

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Our podcasts are accessible to all!

In addition to the voicemail, each episode is segmented and accompanied by a full transcript, allowing deaf and hard-of-hearing individuals to access it. And with a Google Translate plugin under Chrome, the episode becomes available in all languages! We also offer a video format.

Why this section?

We support companies that implement real and measurable ESG (Environment, Social, Governance) approaches. Pierre, on the other hand, trains and supports them towards this transition. Our approaches are different but complementary: we encourage, he guides.

This choice also poses a real challenge: where to draw the line?

Some companies mentioned in this section are not aligned with our current criteria, and we would refuse any collaboration with them as long as they do not initiate concrete change. But that is precisely where Pierre intervenes: his role is to initiate this transformation.

This podcast does not seek to judge, but to inspire. The objective? To encourage rather than discourage, to support rather than exclude.

Let’s commit together to a circular, sustainable and inclusive economy. Listen, reflect, act… in 6 minutes.

Listen to this podcast “La VSME, une opportunité durable pour les PME ?” from “6 Min. pour comprendre” with Pierre Léonard via our YouTube channel (subscribe: thank you!):

Podcast segmentation “VSME: a sustainable opportunity for SMEs?”:

• [00:00:18] Podcast introduction
• [00:00:32] Subject presentation: the VSME, why you shouldn’t be afraid of it
• [00:01:04] The VSME, CSRD’s little sister
• [00:01:46] What is the VSME?
• [00:02:05] What is the objective of this approach?
• [00:02:15] Why is it important?
• [00:02:51] Improve competitiveness
• [00:03:22] Strengthen partnerships
• [00:03:39] Attract more responsible customers
• [00:04:03] Meet the requirements of major clients
• [00:04:59] Example of a bakery
• [00:05:29] Access to financing
• [00:05:51] The BIA: Business Impact Assessment by B Lab
• [00:06:27] Define objectives and structure your strategy
• [00:06:44] Anticipate regulatory changes, stay informed
• [00:07:03] Get ahead
• [00:07:27] Announcement of the next topic
• [00:07:43] Reminder: leave a message on the voicemail!

Podcast transcript “VSME: a sustainable opportunity for SMEs?”:

Download the file to read the podcast transcript.

Michel: [00:00:00] This podcast project is an initiative created and proposed by the non-profit organisation “The Podcast Factory Org”, sponsored by “transforma bxl – Innovation Playground”, and you can find all episodes on the website “What’s Your Story point be”.

Michel: [00:00:18] Welcome to a new “Midoricast” episode, your podcast on positive initiatives for the environment. “Midori” means green in Japanese, “Cast” is for Broadcast. We are in the “Six minutes pour comprendre” (Six minutes to understand) section with Pierre Léonard, to whom I hand over the floor.

Pierre Léonard: [00:00:32] Thank you, Michel. Hello everyone, as you are starting to know, I am a facilitator in sustainable development, and in this section, I strive to answer the questions that decision-makers ask themselves about sustainable development. Today, I propose that we tame what looks very much like a real dragon for many SMEs; we are going to explore the VSME, no less. We will see what it is, why it is important, and also why we should not be afraid of it.

Pierre Léonard: [00:01:04] The VSM? Well, what is the VSME? It’s going to be a bit technical, but hang in there because it’s worth it. The VSME, so what is it? It’s an ugly acronym that the European Union has the secret to for, listen carefully, I’m going to say it in English: Voluntary Sustainability Reporting Standard for Non Limited SM’s. What does that mean? It is in fact a voluntary reporting standard for companies that are not listed on the stock exchange. And so basically, what is it? It’s the little sister of this famous CSRD, another beautiful abbreviation, the European directive that imposes sustainability reporting on large companies, which we will talk about elsewhere.

Pierre Léonard: [00:01:46] This VSME, what is it? In fact, it is a structured framework specifically designed for SMEs and unlisted companies. It offers a simplified approach to this famous sustainability reporting and covers the three main areas of ESG: Environment, social, governance, you are starting to get familiar with that.

Pierre Léonard: [00:02:05] This approach aims to help SMEs reconcile the European Union’s sustainability objectives and the United Nations’ Sustainable Development Goals, which we have already discussed.

Pierre Léonard: [00:02:15] Why is this important? Firstly, because we are in a world where sustainability is becoming a major issue, and therefore SMEs, which constitute the fabric of economic life, at least in Belgium, France, and other European countries, can no longer remain on the sidelines of these initiatives and this evolution. And so precisely, this famous VSME standard will allow them to engage effectively, in a structured way, and even if it is voluntary, in a sustainable development approach while remaining within their resources and capacities. We are not going to ask them to go beyond what they are capable of doing.

Pierre Léonard: [00:02:51] Even if it may seem a little off-putting at first, this framework actually has many key advantages for small businesses. First of all, it will allow them to improve their competitiveness by demonstrating their commitment to sustainability, which we have already seen has many advantages, not only financial, but also in terms of innovation, attractiveness to potential employees, to potential investors, this improvement is not limited to the financial aspect.

Pierre Léonard: [00:03:22] Secondly, this will help strengthen partnerships. Partnerships for SMEs are obviously essential because they do not have all the cards in hand on their own. And so the VSME will facilitate integration into existing value chains, particularly with large companies that are subject to the CSRD, and I will come back to that in a moment.

Pierre Léonard: [00:03:39] Next, companies that embark on this voluntary and proactive approach will also potentially attract more responsible customers. Because it is true that the general public, or even B2B customers, are increasingly sensitive to a certain eco-responsibility in companies’ approaches. And so the fact of showing that we are adopting this approach will attract customers and talents who are sensitive to this.

Pierre Léonard: [00:04:03] And then, what is also very important is that by adopting this famous VSME, a company will meet the requirements of its major clients. Since these major clients, I am talking about listed companies, financial sector companies, and other companies that will be affected by the CSRD from 2025 and even more so from 2026. One of the things they are required to do is to themselves call upon responsible suppliers, you see where I’m going with this! With the entry into force of the CSRD, well, they will have to ask their suppliers to account for their sustainability. This has its good points because, on the one hand, it’s true that it will be a bit restrictive for SMEs to get up to speed and show their green credentials, but also, and above all, because it will put in place a whole value chain that will be sustainable and virtuous, spreading, if I dare say, like wildfire.

Pierre Léonard: [00:04:59] We can take the example of a bakery. A semi-industrial bakery that works on public contracts. Well, if it works on public contracts that involve, for example, large organisations, banks, etc., hospital chains, that sort of thing, it will be obliged to adopt and adapt its practices to be able to meet the requirements of its customers and score points in tenders. Otherwise, it simply risks being disqualified. A major advantage, and it is almost essential in terms of competitiveness, is to adopt these practices.

Pierre Léonard: [00:05:29] And then, a last super important point is access to financing. Because, get this, to be able to borrow, you will also have to show your green credentials, as before. And you will have to be able to demonstrate better management of environmental and social risks to reassure banks about your repayment capacity, and more favourable interest rates as a reward for companies committed to sustainability. Not all banks, but there are some banks that already offer this.

Pierre Léonard: [00:05:51] So how do we put all this into practice? Well, the first step, obviously, is to see where you stand. It is to carry out an initial assessment of your ESG impact. Don’t panic, there are tools that exist to do this, and there are free tools. And one of those that I like is the BIA: Business Impact Assessment, which B CORP offers free of charge as part of its ESG labelling. The advantage is that it will lead you through a whole series of criteria, and for each criterion, there is a whole series of points that correspond to a very, very fine evaluation. So you will ultimately really be able to see where you are and from there

Pierre Léonard: [00:06:27] Secondly, you will define objectives, then you will structure your strategy using the VSME framework, which we could possibly link in this broadcast, and you will put in place a simplified reporting that corresponds to what you can do, as we said earlier.

Pierre Léonard: [00:06:44] Don’t forget to anticipate regulatory changes, to keep yourself informed, this will also give you an advantage, particularly a competitive one, that’s it for the VSME standard. An opportunity for SMEs to commit concretely to sustainable development, to improve their competitiveness, to prepare for future regulatory requirements, all within a voluntary framework.

Pierre Léonard: [00:07:03] Don’t be afraid, but the last recommendation I would like to give you is, above all, do not hesitate to start early. Most of the people I meet who panic about this and about the CSRD are people who said to themselves “Yes, yes, we have plenty of time” and then finally find themselves up against the wall, having to suddenly improvise resources to dedicate to this. And this, obviously, is not good for the smooth running of activities and for the organisation.

Pierre Léonard: [00:07:27] I hope you are ready to take up the challenge, thank you for being with me during these “Six minutes pour comprendre” the VSME. And in the next episodes, we will explore other concepts related to sustainable development, we will notably talk about the circular economy. See you soon!

Michel: [00:07:43] And you have the voicemail link in the podcast text, feel free to leave a voicemail message and contact Pierre Léonard, and visit his blog “Six minutes pour comprendre”. See you soon.

Michel: [00:07:55] This podcast project is an initiative created and proposed by the non-profit organisation “The Podcast Factory Org”, sponsored by “transforma bxl – Innovation Playground”, and you can find all episodes on the website “What’s Your Story point be”.

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