The Steinbeis Consulting Group Sustainability helped ITSG GmbH to use the VSME voluntary reporting standard
Based in Offenbach, ITSG GmbH is the central IT service provider for Germany’s statutory health insurance system and has been driving innovation in public healthcare for almost 30 years. The company employs around 200 people who develop and operate digital solutions that enable more efficient management of the healthcare system and make it fitter for the future. Like many other small and medium-sized enterprises, ITSG found itself having to prepare for the EU’s new Corporate Sustainability Reporting Directive (CSRD) despite the fact that, for a long time, the regulatory requirements were unclear. The Steinbeis Consulting Group Sustainability helped the company to position itself as a responsible partner with its customers by producing its first voluntary sustainability report using the VSME standard.
Diagram showing VSME sustainability reporting standard for SMEs
In spring 2025, the European Commission’s Omnibus package introduced further substantive changes to the scope of its proposed laws on sustainability, aimed at significantly simplifying the reporting requirements for small and medium-sized enterprises (SMEs). It now seems likely that companies with under 1,000 employees will be fully exempted from mandatory sustainability reporting under the CSRD. Instead, the Commission is recommending the voluntary VSME standard (Voluntary Sustainability Reporting Standard for Small and Medium-Sized Enterprises) as a new, more practical basis for sustainability reporting. For ITSG, this means that it will now probably not be required to report on sustainability at all, having previously been told that it would have to do so at some point in the future.
Opting for transparency by engaging in voluntary reporting despite exemption
In spite of this exemption from the new regulations, ITSG’s senior executives chose to continue with transparent reporting on the business’s sustainability activities. They took this decision because, rather than seeing it purely in terms of compliance, they take a more holistic view of sustainability as an expression of corporate responsibility towards society, the environment and their own employees.
In addition to this proactive approach to sustainability, there is also growing pressure from customers, partners and other key stakeholders to provide transparent information on environmental and social matters, regardless of the regulatory requirements. So it made perfect sense for ITSG, ably assisted by the Steinbeis Consulting Group Sustainability, to produce a voluntary sustainability report using the VSME standard. Specially tailored to the needs and resources of SMEs, the standard allows companies to carry out structured, comparable reporting that isn’t a drain on their resources.
The VSME standard: a pragmatic solution for SMEs
The VSME standard allows ITSG to report its sustainability performance in a structured, comparable manner, but without the bureaucracy involved in CSRD compliance. The standard has two modules: basic and comprehensive. The basic module comprises around 40 key indicators, while the comprehensive module uses a materiality assessment to enable detailed reporting on all the sustainability issues identified as being critical.
This framework allows SMEs like ITSG to refine and continuously develop their sustainability strategy. In the near future, ITSG intends to set itself climate targets based on the Paris Climate Agreement that will form the basis of an ambitious transition plan. In addition to strategic information like this, the annual VSME report also provides transparent details of the relevant indicators such as energy consumption, the associated greenhouse gas emissions, volume of waste generated, workforce structure, accident rates and continuing professional development measures. The foundation for this reporting was laid by the double materiality assessment previously carried out with the help of the Steinbeis Consulting Group Sustainability.
Sustainability brings strategic opportunities
The regulatory uncertainty of the past few years has caused concern among many SMEs. But ITSG has shown the value of taking a proactive, transparent approach even if there is no legal requirement to do so. Voluntary reporting using the VSME standard allows businesses to credibly communicate their own sustainability agenda, manage the risks and leverage the opportunities. At the same time, ITSG still has the flexibility to respond to future regulatory developments. This approach based on proactive, open communication and systematic stakeholder involvement has enabled an SME like ITSG to position itself within the industry as a responsible, future-focused partner who goes beyond the statutory requirements. The VSME standard offers SMEs a useful framework for improving their transparency and progressively embedding sustainability within their corporate strategy.
Rüdiger Senft took part in a Steinbeis Lunchbreak discussion with Dr. Christoph Soukup and Dr. Michael Ortiz where he shared insights about the EU’s CSRD.
The Steinbeis Consulting Group
Sustainability (SCGS) is a partnership of 15 Steinbeis Enterprises. Its focus is on sustainability, and in particular environmental, social and governance (ESG) criteria, reflecting the importance of these issues in today’s world. With its breadth of expertise and wide range of sustainability consulting services, SCGS is able to provide solutions for enterprises and organizations of all sizes and from all industries.
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