VSME Sectoral Guidance
VSME Module B applies to all SMEs regardless of sector — but the most material metrics, the biggest data challenges, and the most relevant sustainability topics differ significantly between a manufacturing company, a retailer, and a professional services firm. Here is sector-specific guidance for the most common SME sectors.
VSME Module B applies to all SMEs regardless of sector — but the most material metrics, the biggest data challenges, and the most relevant sustainability topics differ significantly between a manufacturing company, a retailer, and a professional services firm. For manufacturing SMEs, the most material VSME metrics are GHG emissions (particularly Scope 1 from process heat and combustion), energy consumption, waste generated in operations, and health and safety.
Manufacturing SMEs — what matters most
For manufacturing SMEs, the most material VSME metrics are GHG emissions (particularly Scope 1 from process heat and combustion), energy consumption, waste generated in operations, and health and safety.
GHG profile: Manufacturing SMEs typically have significant Scope 1 from gas-fired process heating, fuel oil for industrial processes, and backup generators. Scope 2 from electricity is also material. The Scope 1/Scope 2 split is important — gas-fired processes are Scope 1; electric processes are Scope 2. Transitioning from gas to electric (heat pumps, electric furnaces) shifts emissions from Scope 1 to Scope 2 and reduces total CO2e as grids decarbonise.
Energy intensity: Manufacturing energy intensity (MWh per tonne of production or per €M revenue) is a key KPI for SLL financing and customer benchmarking. Track production volumes alongside energy consumption to calculate intensity — this shows efficiency improvement even when absolute consumption increases due to production growth.
Waste: Manufacturing generates the most complex waste streams of any SME sector — hazardous waste from chemicals and cutting fluids, metal swarf, plastic trim, and process rejects. VSME Module B requires total waste by hazardous/non-hazardous and disposal method. Invest in waste tracking infrastructure — accurate waste data is often more valuable for supply chain positioning than the GHG data.
Health and safety: Manufacturing has the highest workplace accident rates of any sector. VSME Module B H&S metrics (accidents, lost days) are scrutinised closely by customers and insurers. Invest in H&S management systems that produce reliable incident data — unreported incidents are a CSDDD compliance risk as well as a VSME data gap.
Retail and wholesale SMEs — what matters most
For retail and wholesale SMEs, the most material VSME metrics are Scope 3 Category 1 (purchased goods — by far the largest emission source), energy consumption in stores and warehouses, and packaging waste.
GHG profile: Retail SMEs have low Scope 1 (typically just fleet vehicles and possibly gas heating in stores) but very high Scope 3. The emissions embedded in the goods you sell dwarf your operational emissions. For Module B, Scope 1 and 2 are manageable. For Module C, Category 1 Scope 3 is the critical metric your customers and investors will focus on.
Refrigeration: Retail SMEs with refrigerated display cabinets or cold chain operations have a specific Scope 1 emission source — refrigerant leakage. HFC refrigerants have high GWP (1,000–10,000 CO2e per kg leaked). Track refrigerant purchases and top-ups to calculate fugitive emissions.
Energy in stores: Lighting, heating, cooling, and refrigeration in retail premises are typically the largest controllable cost and emission source for retail SMEs. LED lighting retrofits, smart heating controls, and refrigeration door installation are the primary energy reduction measures — with payback periods of 2–5 years.
Packaging and waste: Retailers face growing customer and regulatory pressure on packaging waste. VSME Module B waste disclosure — and Module C packaging metrics — support customer ESG requirements and align with the EU Packaging and Packaging Waste Regulation (PPWR) requirements that are intensifying for all businesses.
Product sustainability claims: Retailers making sustainability claims about products they sell — 'sustainably sourced', 'eco-friendly', 'organic' — must comply with the EU Green Claims Directive. VSME disclosure does not itself substantiate product-level claims — those require product-specific evidence separate from company-level VSME metrics.
Professional services and construction SMEs
Professional services SMEs (accounting, legal, consulting, IT, marketing): have very low Scope 1 and 2 emissions — typically just office gas heating and electricity. The most material metrics are: business travel (Scope 3 Category 6) — flights and rail for client work; employee commuting (Scope 3 Category 7) — often the largest emission source for knowledge workers; and office energy intensity per employee. For Module B, completing GHG data is quick — the data is minimal. The main challenge is business travel which requires travel booking system data. Social metrics (diversity, pay gap) are typically more material than environmental metrics for professional services.
Construction SMEs present a very different profile: high Scope 1 from plant and machinery diesel; significant Scope 3 Category 1 from construction materials (cement, steel, timber); high health and safety risk with some of the worst accident statistics of any sector. VSME Module B H&S data is critical for construction SMEs — client pre-qualification increasingly requires documented H&S performance. The Scope 1 from construction plant (excavators, cranes, generators) requires fuel consumption data from plant logs or fuel supplier records. Construction waste — mixed rubble, timber, plasterboard — is a significant VSME Module B metric and increasingly subject to EPR (extended producer responsibility) under the Packaging Regulation and forthcoming Construction Product Regulation.
Frequently asked questions
Our sector has very low GHG emissions — should we still complete VSME?
Yes — even if your emissions are low, VSME Module B provides value through social and governance disclosures, which are often more material for service sector companies. Customers requesting VSME data need confirmation that you do not have material negative sustainability impacts — a low-emission, well-governed company can demonstrate this efficiently through Module B.
We are a food SME — does VSME cover food-specific sustainability topics?
VSME Module B covers the core metrics. Food-specific topics — food waste, water use in food processing, agricultural supply chain impacts — are partially covered in Module C but not comprehensively. Food SMEs may need to supplement VSME with sector-specific reporting frameworks (Sustainable Agriculture Initiative Platform, WRAP food waste protocols) to satisfy customer requirements in the food and beverage sector.
Our business is seasonal — how do we handle annualised metrics?
Use a 12-month reporting period aligned with your financial year, regardless of seasonality. Total annual consumption, emissions, and incidents reflect your full operating cycle. For metrics where seasonality is significant (energy consumption, headcount), noting the seasonal pattern in your disclosure provides useful context for customers interpreting year-on-year changes.