What is ESG reporting?
ESG stands for environmental, social and governance. An ESG report brings together information about a business’s environmental impact, its people and how it is run.
For a small business, that can mean describing energy use, working conditions and company practices. Much of the starting information comes from familiar records:
| Topic | Examples and where to find them |
|---|---|
| Environmental | Electricity and fuel used, emissions, water and waste. Start with utility bills, meter readings and waste collection statements. |
| Social | Employee numbers, pay, training and health and safety. Start with payroll, training records and workplace accident records. |
| Governance | How the company handles business conduct and relevant policies. Start with company policies and records held by management. |
ESG is a broad term. A request for an “ESG report” does not identify a single form or reporting standard, so it helps to find out what the person asking needs.
Why might a bank or customer ask?
A bank may use sustainability information when reviewing a business or discussing finance. A customer may be collecting information about its suppliers. Ask what the information will be used for, which year it should cover and when it is needed.
If you received a questionnaire, read it before collecting new figures. It might concern your whole company, one site or a particular product. A company report and a product carbon footprint require different information.
You can use the example response to a bank or customer to clarify the request and agree what to send.
How can a VSME report help?
VSME gives smaller businesses a common structure for sustainability reporting. Its Basic Module covers company information, environmental topics, employees and business conduct. Our tool guides you through those topics and turns your answers into a report.
The completed example shows what that looks like for a fictional engineering consultancy. You can read the report before entering any information of your own.
VSME is voluntary. Ask whether a Basic report answers your recipient’s questions, especially if they request additional climate or supply-chain information. The standard guide explains the reporting options and how VSME differs from legally required reporting.
Prepare your first report in five steps
- Choose the company and year. Decide which company and sites the report covers. Use those same dates and locations when collecting each set of figures.
- Find the people with the records. Finance may have accounts and utility bills. Payroll can help with employee figures, while a site manager may hold water and waste records.
- Ask for specific information. Say what figure you need, for which period and in which unit. Ask for the source record so you can check it later.
- Work through the calculations. Check that employee breakdowns add up. For energy emissions, use the worked calculation examples to understand how bills become reporting figures.
- Read the finished report. Check names, dates and totals, and make sure written explanations describe what your company actually does.
A useful request to a colleague
“Please send the electricity used at our Stockholm site from January to December 2025, in kWh, along with the invoices. If any months are missing or the bill includes another tenant, please let me know.”
The preparation checklist covers the records to gather and includes a message you can adapt. You can start the questionnaire with what you know and return as more information arrives.
If a figure is missing, keep it as an open task. Entering zero says there was none; it does not mean you have not found the information yet. Where you use an estimate, keep a note of how you worked it out.
VSME background: the Commission’s recommendation and EFRAG’s reporting resources. See the version information for the basis used by this tool.
Start your first VSME report.
Answer questions about your company and download a VSME Basic Module report to share with banks and customers. You can start with what you know and return as you gather the remaining information.
Start your reportFree during early access. No account needed.