VSME vs B Corp's BIA

Which sustainability reporting tool fits your business?

As an impact branding agency that is B Corp certified ourselves, we get this question more and more: 'What's the difference between VSME and the BIA (B Corp Impact Assessment)?' It's a fair question. The range of sustainability standards is growing faster than we can keep up with. Time to clear this up.

What exactly is VSME?

VSME stands for Voluntary Sustainability Reporting Standard for SMEs. It sounds complex, but the idea behind it is actually very simple.

Imagine: you run a small or medium-sized business and suddenly you're getting questions about sustainability from all sides. From your bank, from investors, from large clients. All different questionnaires, all slightly different. Chaos.

The European Commission thought: there's a smarter way. After a two-year development process, EFRAG (the European organisation that develops sustainability standards) officially launched VSME in December 2024.

VSME development timeline:

• November 2022: Initial ideas and discussions
• September 2023: European Commission issues official mandate
• January 2024: Public consultation with draft version
• December 2024: Official launch of the standard

In other words: VSME is less than a year old! It's literally Europe's newest response to the ESG reporting challenge for SMEs. A standardised way for smaller businesses to report on sustainability, without drowning in bureaucracy.

How does VSME work?

VSME works with two modules:

Basic module: 11 essential topics such as energy consumption, employee satisfaction and business ethics. Perfect for businesses just getting started.

Extended module: 18 topics in total, with extra attention to climate risks and value chain impact. For businesses that want or need to report in more detail.

The smart part of VSME is its "if applicable" principle. If something isn't relevant to your business, you don't have to answer it. No forced answers to questions that don't apply to you.

And what about the B Impact Assessment?

The B Impact Assessment (BIA) has been around much longer, since 2006. It's a free online tool that allows businesses worldwide to measure their social and environmental impact. More than 150,000 businesses have already used it.

For us as a B Corp, the BIA is mandatory. Every three years, we go through this comprehensive assessment. And we can tell you: it's truly extensive and thorough.

A major change: B Corp standards renewed

In April 2025, B Lab drastically revised the B Corp standards. This has implications for how it compares to VSME:

From 5 to 7 impact areas: The old five areas (Governance, Workers, Community, Environment, Customers) have been expanded to seven new "Impact Topics":

1. Purpose & Stakeholder Governance: Acting from a clear purpose
2. Climate Action: Concrete climate actions and emission reduction
3. Human Rights: Human rights across the entire value chain
4. Fair Work: Fair work and positive workplaces
5. Environmental Stewardship & Circularity: Environmental management and circularity
6. Justice, Equity, Diversity & Inclusion: Diversity and inclusion
7. Government Affairs & Collective Action: Advocacy and collective action

End of the points system: The old system where you needed to score 80 out of 200 points has been dropped. Now you must meet specific requirements across all seven areas. No more compensating weak areas with strong ones.

Continuous improvement required: Businesses must not only meet "Year 0" requirements, but also improve in year 3 and year 5. Standing still means falling behind.

VSME and BIA: the differences at a glance

Aspect | VSME | B Impact Assessment

---|---|---

Purpose | EU reporting for supply chain | Global impact measurement and B Corp certification

Target audience | SMEs (<1000 employees) | All businesses, from startup to multinational

Scope | European focus | Global movement

Impact areas | 2 modules with ESG themes | 7 mandatory Impact Topics (new from 2025)

Assessment | "If applicable" principle | Meet all mandatory requirements per Impact Topic

Time investment | 30 minutes to 2 hours | Months of preparation, extensive documentation

Flexibility | High flexibility, voluntary | Strict requirements, mandatory continuous improvement

Verification | Self-reported | External verification required (from 2025)

Cost | Free (platforms may charge) | Free tool, annual certification fees

Outcome | Standardised ESG report | Certification + improvement journey over 5 years

Points system | No points | No points anymore (new), only pass/fail

They complement each other

Start with VSME if you:

• Are just starting with sustainability reporting
• Mainly need to answer questions from your value chain
• Are a European SME
• Want simple, practical reporting

Go for BIA if you:

• Want comprehensive impact measurement
• Are pursuing B Corp certification
• Want to apply and lead with global best practices
• Are ready to go deeper
• Want to become part of a movement of sustainable businesses

Why this matters for businesses

With the new CSRD legislation, large companies must map their entire supply chain. What does this mean? If you supply to a large company, you're going to get questions about sustainability. VSME makes it possible to respond in a structured and efficient way.

The timing is perfect

With the new B Corp standards, the gap between VSME and B Corp certification is narrowing:

• VSME offers an accessible stepping stone towards more advanced impact measurement
• B Corp is becoming stricter but also clearer in its requirements
• Both systems focus on concrete action rather than just reporting

For SMEs, this means a clear path: start with VSME for supply chain compliance, build expertise, and consider B Corp certification later for international recognition and deeper impact.

Useful to know: much of the data you collect for VSME can also be used for the new B Corp requirements. At BR-ND People, we're transitioning to the new B Corp standard in 2026 and that's changing the playing field significantly. Our B Corp recertification in 2025 was still under the old standards.

What we're learning: The new B Corp standards make certification stricter but also clearer. No more chasing points, but concrete action on all seven Impact Topics. This aligns better with what businesses actually need.

For our clients, this means VSME becomes an even better preparation for potential B Corp certification. The overlap in themes such as climate action, human rights and environmental stewardship is growing.

Our recommendation: start with VSME as an accessible first step. It gives you the foundation and preparation that becomes increasingly valuable as all standards get stricter.

Ready to get started?

Whether you choose VSME, BIA, or both, the most important thing is that you start. Sustainability reporting is only becoming more important, and businesses that start early have an advantage.

Timing to keep in mind: B Corp certification gets stricter from January 2026 with the new standards. VSME is available now and is increasingly accepted as an EU standard. Start where it makes sense for you.

Questions? We'd love to think along with you about the best approach for your business. Get in touch for a conversation.

Remember: perfect is the enemy of good. Start where you are, use what you have, do what you can. The planet (and your stakeholders) will thank you.