Guide
Sustainability: from the mandatory minimum to value creation.
The guide for SMEs in Switzerland.
Approaching sustainability pragmatically: from compliance exercise to value creation
This guide is aimed at owners and managing directors, CFOs and procurement managers of Swiss SMEs with around 20–250 employees. Many of these companies are facing the challenge of meeting rising sustainability requirements from financing, supply chains, tenders and the labour market, without being subject to the large European reporting obligations themselves.
The aim of this guide is to show how Swiss SMEs can approach sustainability with a reasonable effort and clearly visible benefits: better financing terms, more stable supply chains, greater operational efficiency and increased attractiveness as an employer.
The guide looks at
The Swiss legal framework
what actually applies to SMEs, and what does not?
The VSME standard
a proportionate reporting framework that is compatible with Europe and serves as a pragmatic entry point into structured sustainability reporting.
Digitalisation and AI
how smart tools and modern procurement processes reduce effort and improve data quality.
This is how we show SMEs a pragmatic and future-proof path towards sustainability.
1. Introduction: why Swiss SMEs need to act now, despite scepticism about EU regulation
Swiss SMEs have traditionally viewed European sustainability requirements with scepticism. Many ask why they should concern themselves with rules from Brussels when they are neither large nor listed on a stock exchange. This attitude is understandable, after all Switzerland is politically and regulatorily independent.
Yet at the same time, the market is noticeably changing. Requirements arise not only from laws, but from banks, insurers, customers and international supply chains. This is exactly where the need for reliable data on the environment (Environmental), social concerns (Social) and corporate governance (Governance), in short ESG, is growing, and in a breadth that also includes smaller companies. The real question is therefore not:
"Are we legally required to report?"
but rather:
"Which information do our most important business partners expect, and what does this mean for our competitiveness?"
In this new reality, sustainability is increasingly becoming a business-critical issue. And SMEs that create transparency early not only secure their market position, they gain tangible advantages.
2. The Swiss framework: which requirements apply, and why and how SMEs are affected
Switzerland has so far taken a lighter regulatory approach than the EU. Nevertheless, several provisions are directly or indirectly relevant to SMEs.[2]
The most important Swiss requirements, explained briefly
Non-financial reporting
OR 964a–c
Only large companies (≥500 FTE, special thresholds) are required to report annually on environment, social concerns, human rights and corruption.[2] Relevance for SMEs: These companies increasingly request ESG data from their Swiss suppliers.
Due diligence obligations on conflict minerals and child labour
OR 964j–l and VSoTr
Obligations for certain metal supply chains (tin, tantalum, tungsten, gold) and for possible child labour risks, set out in the Swiss Ordinance on Due Diligence and Transparency regarding Minerals and Metals (VSoTr).[3] Relevance for SMEs: Particularly for industry, trade, textiles and mechanical engineering, depending on the supply chain context.
TCFD-aligned climate reporting
Since 2024, large Swiss companies have been required to report on climate risks, targets and measures in a TCFD-compliant way.[4] Relevance for SMEs: These companies need Scope 3 and risk information from their suppliers, including from small SMEs.
Climate and Innovation Act (KlG): net zero by 2050
Not a conventional reporting regime, but a strategic framework that shapes the expectations of banks, insurers and industry associations: Switzerland has committed by law to a net-zero target by 2050.[5][6]
SWISS GAP FER guide on sustainability management
A Swiss guidance document for SMEs that want to report systematically and pragmatically, with a focus on step-by-step sustainability management and reporting.[7]
Even though many of these rules do not formally apply to SMEs, they have an indirect effect. Large customers, banks and insurers use them as a reference and pass the expectations on to smaller companies in their networks.
Scope 1, 2 and 3 explained briefly
Companies cause greenhouse gas emissions at different points in the value chain. The international GHG Protocol logic distinguishes three categories ("scopes") to make clear where emissions arise and who is responsible for what.
Scope 1: direct emissions
Emissions that arise within the company itself. → Anything that burns or emits directly on site.
- Company vehicles
- Heating systems, oil boilers, gas water heaters
- Own machines or plants
Scope 2: indirect emissions from purchased energy
Emissions that arise outside the company but are caused by its purchase of energy. → The CO₂ footprint of the energy purchased.
- Electricity
- District heating or cooling
Scope 3: other indirect emissions along the value chain
All other emissions that are not generated within the company itself but are caused by its activities. Scope 3 comprises 15 subcategories, typically including: → Scope 3 is usually the largest share, often over 70% of an SME's total emissions.
- Purchased goods and services (procurement / supply chain)
- Transport and logistics
- Business travel and commuting
- Use of products
- Waste disposal and recycling
- Investments
Why this matters
Many SMEs are surprised by how little influence they have over Scope 1 and 2, and how much influence they have over Scope 3. It is often in procurement, with suppliers and in logistics that the biggest levers for reducing emissions lie, which is exactly why Scope 3 data is increasingly central to bank ratings, tenders and ESG questionnaires.
3. Indirect pressure from banks, insurers and customers
Many Swiss SMEs are well financed from their own equity. Nevertheless, banks and insurers play a central role: in current account credit lines, investment loans, leasing, mortgages and risk cover. It is precisely here that sustainability aspects are increasingly feeding into risk assessments and terms.
Banks no longer assess companies solely on balance sheet ratios. They also consider climate and transition risks, energy dependencies, supply chain risks, and governance and compliance structures. These factors affect the rating, interest terms and the availability of financing. Those who cannot provide structured ESG data are increasingly falling behind.[2][4]
Standards in procurement are shifting too:
Recent surveys by the consultancy Bain & Company show that more than half of the buyers surveyed worldwide are increasing their spending on sustainable suppliers, and a similarly large share plans to exclude suppliers that do not meet environmental or social standards.[1] For Swiss SMEs, this means that sustainability is increasingly deciding whether you make it onto the shortlist at all.
This creates an "indirect requirements specification" for SMEs. It is not the law that demands the ESG report, but:
- the credit discussion with your house bank,
- a large customer's tender,
- the renewal of an insurance policy,
- or the onboarding process as a new supplier.
Those who can respond in a structured way signal professionalism, risk awareness and readiness for the future.
Three typical ESG questions from banks
- How exposed are you to climate risks?
- How do you manage supply chain and reputational risks?
- Do you have internal policies on environment, social matters and governance?
What large customers' procurement teams want to know today
- CO₂ footprint
- Labour and social standards
- How critical raw materials are handled
4. The VSME as a pragmatic standard for SMEs
Against this backdrop, the question arises: how can an SME present its sustainability performance so that banks, customers and auditors can work with it, without a corporate-scale apparatus?
The VSME standard (Voluntary Sustainability Reporting Standard for non-listed SMEs) addresses exactly this.[8][9] EFRAG (European Financial Reporting Advisory Group) developed it explicitly for non-listed small and medium-sized companies, to provide a voluntary, proportionate reporting framework that remains compatible with the logic of ESRS/CSRD (see glossary) without adopting their complexity.
At its core, VSME offers
- a clear structure along the ESG topics,
- a significant reduction compared with the breadth of ESRS,
- a division into two modules:
- VSME Basic: an entry-level version with a focused set of core disclosures, suited to SMEs at the start of their ESG journey,
- VSME Comprehensive: an extended version with additional information on strategy, targets, measures and selected metrics.
Many banks, auditors and large companies now see VSME as a suitable, lean basis for SME reporting, because it:
- is proportionate (SMEs' resources are respected),
- remains compatible with CSRD/ESRS (no dead end),[8][9]
- delivers comparable data (for portfolios, supplier pools, rating models).
What this means for Swiss SMEs
Although VSME is an EU standard, it is establishing itself de facto as a common language, particularly where an SME is export-oriented, part of international supply chains or dependent on European banks and investors.
The VSME Comprehensive module is designed as an extension and builds directly on the Basic module. Those who opt for the comprehensive version automatically also cover the eleven basic requirements of the Basic module. Conversely, the Basic module works without problems as a standalone report. ZEROvia applies this tiered model consistently. The user guidance makes it easy to start with the Basic module, which can later be seamlessly extended with the Comprehensive module.
The rules of VSME: why the standard is SME-friendly
VSME differs from group-level standards through pragmatic principles that reduce effort to what is essential. The most important rules at a glance:
- The "If applicable" principle (permission to leave gaps): This is the most important lever for SMEs: you only need to report information if it applies to your company.
- No production with high water consumption? Then module B6 (Water) does not apply.
- Fewer than 50 employees? Then many social metrics do not apply. Where there is nothing to report, nothing has to be reported. This greatly reduces the scope for service providers or small businesses.
- "Light" double materiality: VSME does not require the complex scientific analysis that is mandatory for groups. It does, however, invite you to take two perspectives:
- Inside-out: What impacts do we have on people and the environment?
- Outside-in: Which risks (e.g. climate change) affect us financially? You may also add topics that are missing from the standard but important for your sector (e.g. specific trade topics).
- One report for the whole group (consolidation): Do you have subsidiaries? You do not have to report separately for each GmbH. VSME allows a consolidated report for the entire group (in line with the financial report). This saves redundant work.
- Comparability and timing: Ideally, the sustainability report should be published at the same time as the annual financial statements. From the second year onwards, you must state prior-year figures so that your progress becomes visible.
- Sensitive data: Worried about disclosing trade secrets? The standard explicitly allows omitting classified or competitively sensitive information (with a brief justification).
5. The danger of "reporting for the sake of reporting"
Anyone who sees sustainability reporting purely as a compliance exercise risks producing one document a year, uploading it in a few places and then not looking at it again for 12 months. That is a pity, because the same data can be used far more widely.
A "report for the sake of reporting" is often recognisable by the fact that:
- metrics do not feed into regular management reports,
- no clear targets are derived from them,
- measures and responsibilities remain unclear,
- the report is produced mainly as a response to individual requests.
A well-designed ESG programme links reporting with active management:
- metrics are updated at least annually,
- they are backed by targets (e.g. energy consumption, share of certified suppliers, accident frequency),
- they feed into investment, procurement and staffing decisions,
- progress is communicated internally.
In this way, what seems like an additional task becomes a management and steering tool that makes costs, risks and growth opportunities visible.
Check: are we really using our ESG report?
Do we have measurable targets for our most important metrics? Do ESG insights feed into procurement and investment decisions? Is the report discussed by the leadership body (management, board of directors), or is it merely signed?
6. Seven levers through which ESG creates genuine added value
Rather than focusing on compliance, it pays to view ESG as a bundle of levers that can generate concrete value. The following seven levers can be addressed systematically with VSME-based reporting:
1. Involve suppliers rather than just checking them
Key message: Sustainability in the supply chain does not come from control but from collaboration. Jointly defined goals on energy, materials or social standards strengthen the relationship and reduce risks. Benefit for Swiss SMEs: A stronger negotiating position, fewer dependencies, more stable supply chains, higher quality. Practical examples / entry topics:
- Energy and material efficiency
- Labour and social standards
- Certifications and evidence
2. A digitalisation boost through ESG
Key message: ESG makes process breaks visible and forces data to be organised. A central ESG profile enables reuse instead of duplicated effort. Benefit for Swiss SMEs: Efficiency gains, fewer errors, a consistent data base for banks, customers and reports, structured processes. Practical examples / entry topics:
- Finance and payroll accounting
- Energy consumption
- Supplier and contract data
- HSE and quality data
3. Use AI purposefully
Key message: AI can automate routine tasks: suggesting texts, checking data, flagging inconsistencies, structuring documents. Responsibility remains with people. Benefit for Swiss SMEs: Time savings, higher quality, faster updates for VSME reports, relief in day-to-day work. Practical examples / entry topics:
- Draft texts on energy and emissions
- Flags for missing supplier data
- Board and management summaries
4. Modern risk management
Key message: ESG extends traditional risk lists with climate, supply chain, reputational and human rights risks. VSME calls for a structured approach to them. Benefit for Swiss SMEs: Fewer disruptions, better supplier choices, clearer investment arguments, greater resilience. Practical examples / entry topics:
- Climate-exposed sites
- Critical suppliers
- Legal and social sensitivities
5. Efficient and competitive procurement
Key message: ESG profiles broaden award decisions: price, quality, sustainability and risk can be assessed together. Benefit for Swiss SMEs: Cost reduction through efficiency, lower failure risk, better access to sustainable suppliers. Practical examples / entry topics:
- CO₂ intensity
- Social and labour standards
- Energy efficiency / circular economy
- Contributions to innovation
6. Unlock innovation potential
Key message: Those who systematically use data on CO₂, resources and social impacts spot innovation opportunities: circular models, services, new materials. Benefit for Swiss SMEs: New business models, stronger customer loyalty, differentiation in the market, faster implementation than large companies. Practical examples / entry topics:
- Material efficiency and recycling
- Service models
- More sustainable logistics
7. Boost employer attractiveness
Key message: Transparent ESG goals strengthen identification, attract talent and improve internal collaboration. Sustainability becomes part of the company culture. Benefit for Swiss SMEs: Better recruitment, lower staff turnover, motivated employees, credible positioning. Practical examples / entry topics:
- Specific goals
- Examples of measures
- Opportunities to get involved
7. Three phases of ESG value creation
To use these levers in a structured way, we recommend a step-by-step approach in three phases. Each phase has clearly defined goals and typical steps; VSME serves as the common thread.[8]
Create transparency
Goal: Gain an overview, lay the VSME foundation. Typical steps: Baseline assessment, selection of material topics, entry with VSME Basic, building a first ESG profile.
Optimise and reduce risks
Goal: Raise efficiency, reduce risks. Typical steps: Improve data quality, involve suppliers, digitise processes, review risk and cost structures.
Innovate and grow
Goal: Seize new opportunities. Typical steps: Develop new offerings, open up sustainable markets, strengthen the employer brand.
In this way, sustainability moves from a static "reporting project" to a continuous improvement process that shows up directly in business success.
Check: where do we stand today?
Have we defined our central ESG metrics? Have we named our most important ESG risks? Do we already have measurable targets?
8. What ZEROvia can do for you today
With its current range of functions, an SME can already:
- run a baseline assessment,
- build a VSME-based ESG profile,
- involve suppliers through digital profiles,
- generate structured reports that banks, customers and auditors can use.
Even today, an SME with a structured ESG profile and a digital supplier base can answer requests from customers, banks and auditors much faster and more consistently.
ZEROvia helps to collect relevant data efficiently, to translate VSME requirements into manageable sub-tasks, and to prepare reports so that they remain traceable and auditable. Recurring requests can be answered on the basis of the same data set, instead of filling in new Excel spreadsheets for each customer.
Not sure which package fits?
Start with Free and the baseline assessment. Or ask us, 15 minutes is enough.
9. Outlook: the platform effect in the supply chain
Looking ahead, an additional multiplier effect emerges: when large companies use a platform such as ZEROvia to capture and involve their suppliers, SMEs can reuse their ESG profile, once captured, many times over, instead of filling in new Excel questionnaires for each customer. This is a deliberately long-term perspective and part of the future ZEROvia roadmap. Over time, this creates an ecosystem in which:
- SMEs capture their ESG information once, in a structured way,
- large companies and banks access verified profiles via interfaces (planned, on request),
- updates made in one place automatically become visible across the network.
This platform effect will reduce the administrative effort for everyone involved and at the same time improve data quality.[8][9]
10. Your roadmap: a VSME report in 4 steps
Rather than a long to-do list, we recommend an iterative process that delivers quick wins early on. This approach matches the logic of ZEROvia:
the baseline assessment
Goal: Baseline assessment and materiality. Action: Run the baseline assessment (e.g. on ZEROvia). Get a rough picture of which stakeholders apply the most pressure (bank? customer?) and which topics (energy? occupational safety?) are truly relevant to you. Result: A first ESG profile in under 30 minutes.
the core: VSME Basic
Goal: Reach "bankability". Action: Collect the data for the Basic module. Documents: electricity bills, heating oil/gas, fuel lists, SUVA accident statement, staff numbers (FTE/headcount). Principle: Apply the "If applicable" principle. Leave out what does not apply. Result: A solid base report that covers 90% of requests.
the extra: VSME Comprehensive
Goal: Supply chain transparency and strategy. Action: Extend the report when customers ask about Scope 3 or climate targets. Documents: commuter data, strategy paper (reduction targets), supplier list. Result: A group-level report that positions you as a strategic partner.
digitise and share
Goal: Efficiency. Action: Maintain your data centrally in a platform (such as ZEROvia) instead of sending Excel lists around. Link the report from the financial report or on your website. Advantage: Next year you only need to update the changes (comparison data).
What you can achieve in 10 days
First ESG profile · VSME base report · Identified quick wins in procurement or resource management
11. Conclusion
For Swiss SMEs, the pursuit of sustainability can therefore be a genuine opportunity to shape the future. It would be almost negligent to leave this potential untapped while dismissing reporting requirements as nothing more than pointless EU bureaucracy. Those who create transparency and use the VSME standard as a pragmatic foundation can:
- meet the requirements of banks, insurers and customers with confidence,
- systematically reduce risks,
- realise efficiency gains in processes and procurement,
- drive innovation,
- and become a more attractive employer.
Sustainability is therefore not only the basic prerequisite for remaining accepted as a reliable business partner ("licence to operate"), but also an initiative for digitalisation, risk management and innovation, and thus a driver of value creation, competitive advantage and long-term, sustainable growth.
12. Footnotes / sources (with URL)
- [1] Bain & Company, How Sustainability Is Creating B2B Growth: A CEO Sustainability Guide 2025, 2025. bain.com/insights/how-sustainability-is-creating-b2b-growth-ceo-sustainability-guide-2025 (opens in a new window)
- [2] SIX Group, Nachhaltigkeitsberichterstattung: Überblick über die Nachhaltigkeitsanforderungen im Schweizer Recht, u. a. zu Art. 964a–964c OR und Klimaverordnung, 2024. handbooks.six-group.com/nachhaltigkeit/schweizer-recht-ueberblick-ueber-die-nachhaltigkeitsanforderungen/nachhaltigkeitsberichterstattung (opens in a new window)
- [3] Bundesamt für Justiz (BJ), Verordnung über Sorgfaltspflichten und Transparenz bezüglich Mineralien und Metallen aus Konfliktgebieten und Kinderarbeit (VSoTr, SR 221.433), background page and ordinance, 2021. fedlex.admin.ch/eli/cc/2021/847/de (opens in a new window)
- [4] Schweizerische Eidgenossenschaft / Fedlex, Verordnung über die Berichterstattung über Klimabelange (SR 221.434), 2022, in force since 1 January 2024. fedlex.admin.ch/eli/cc/2022/747/de (opens in a new window)
- [5] Bundesamt für Umwelt (BAFU), Netto-Null-Ziel 2050: Klima- und Innovationsgesetz (KlG), information page, 2025. bafu.admin.ch/de/netto-null-ziel-2050 (opens in a new window)
- [6] Swiss Sustainable Finance, Klimaschutzgesetz und Netto-Null-Ziele: Klima- und Innovationsgesetz (KlG), position paper, 2024/2025. sustainablefinance.ch/en/our-activities/ssf-positions/klimaschutzgesetz-und-netto-null-ziele.html (opens in a new window)
- [7] Stiftung für Fachempfehlungen zur Rechnungslegung (Swiss GAAP FER), FER-Leitfaden: Nachhaltigkeitsmanagement und -berichterstattung bei KMU, publication notice, 2024. fer.ch/ueber-uns/publikationen (opens in a new window)
- [8] EFRAG, VSME Standard: Voluntary Sustainability Reporting Standard for Non-Listed SMEs, standard document, 2024. efrag.org/sites/default/files/sites/webpublishing/SiteAssets/VSME Standard.pdf (opens in a new window)
- [9] Europäische Kommission, Commission presents voluntary sustainability reporting standard to ease burden for SMEs (VSME), press release, 30 July 2025. finance.ec.europa.eu/publications/commission-presents-voluntary-sustainability-reporting-standard-ease-burden-smes_en (opens in a new window)
A small step with a big impact.
Start with Free and the baseline assessment. Or ask us, 15 minutes is enough.