Value chain reporting based on voluntary standards

• Companies operating in supply chains of large companies subject to CSRD and ESRS.
• Compliance and sustainability officers in MSMEs.
• Finance and risk management teams looking to improve ESG-related financing opportunities.
• SMEs seeking to enhance their competitiveness and ESG compliance.

Over the past decade, the focus on environmental issues has grown exponentially, resulting in various global commitments initiatives aimed at transforming current institutional, economic and financial models.

As in scope companies adopt the Corporate Sustainability Reporting Directive (CSRD) and disclose sustainability data under the European Sustainability Reporting Standards (ESRS), their value chain partners face increasing demands for sustainability disclosures.

The Voluntary Standard for non-listed micro-, small-, medium-sized undertakings (VSME), developed by EFRAG, provides a simplified yet aligned framework for SMEs to report sustainability information, ensuring compatibility with the CSRD requirements of their clients and financial institutions.

By the end of this training, participants will:

• understand the VSME Standard and its alignment with CSRD & ESRS;
• identify which sustainability data large companies require from their value chain partners;
• learn how to apply the Basic & Comprehensive Modules of the VSME Standard;
• gain insights into data collection, reporting processes, compliance best practices;
• explore how sustainability reporting enhances access to finance and business partnerships.

The business case for sustainability reporting in the value chain

• Why SMEs need to disclose sustainability data to their business partners.
• How CSRD and ESRS create reporting obligations for large companies and their suppliers.
• Investor and financial institution expectations - The role of ESG in creditworthiness and financing.

Understanding the VSME standard and its two modules

• Basic module: minimum disclosures covering Environmental, Social, and Governance (ESG) data.
• Comprehensive module: additional metrics requested by banks, investors, and corporate clients.
• Alignment with ESRS: ensuring data compatibility for large companies reporting under CSRD.

Key sustainability data required from SMEs in large companies’ supply chains

• Environmental metrics - Carbon footprint (Greenhouse Gas (GHG) emissions, energy use, pollution, waste).
• Social metrics - Workforce conditions, health and safety, human rights policies.
• Governance metrics - Anti-corruption, transparency, and compliance with sustainability policies.

How to collect, report, and share sustainability data efficiently

• Step-by-step guide to using the VSME standard.
• Data collection tools & reporting templates to ensure accuracy.
• How to align sustainability disclosures with client expectations.

Opportunities and competitive advantages for SMEs

• Better access to contracts with large enterprises that prioritise ESG-compliant suppliers.
• Improved access to financing - How ESG reporting enhances loan approvals and investment opportunities.
• Strengthening brand reputation and market positioning.

Next steps for SMEs

• Assess which sustainability disclosures apply to your company.
• Engage with corporate clients to understand their sustainability data needs.
• Set up internal processes for ESG data collection and reporting.
• Explore EU funding and incentives for sustainability improvements.

This training is coordinated by Michael Horvath and Julien Jacqué, Director at PwC Luxembourg.

Michael Horvath is a partner at PwC with extensive expertise in sustainable finance and the asset management industry, including both financial and real assets. Since joining PwC Switzerland in 2011 and PwC Luxembourg in 2018, he has led significant projects in regulatory audit and advisory, focusing on the asset management sector. Michael has played a key role in implementing the EU regulatory framework for sustainable finance, including SFDR, taxonomy regulation, and CSRD, as well as other regulatory initiatives such as DORA, AML/CFT, CSSF circular 18/698, and MICA. He is a certified public accountant in Switzerland and Liechtenstein and has contributed to designing compliance frameworks and operational implementations driven by regulatory changes. His notable client projects include defining target operating models for Luxembourg AIFMs, digital operational resilience planning, AML/CFT framework implementation, and ESG/sustainability process design, supported by his involvement in training and regulatory advisory.

Julien Jacqué is a partner in PwC Luxembourg’s technology consulting department, co-leading the ESG Non-financial sector service offering and ESG Data & Technology services across sectors. With over 12 years of experience, he supports operational and financial clients in launching Sustainability and ESG transformation programs, guiding them from ESG strategy definition to business model transformation and regulatory reporting. Specialising in transport, logistics, manufacturing, and financial services, Julien leads large-scale transformation projects and international teams, including ESG reporting upgrades for telecom clients. His expertise includes ESG strategy, Net Zero, business intelligence platforms, and end-to-end project leadership for major clients in Europe and beyond.