VSME Basic MM Generation

This assessment framework provides VSME Basic entities with a structured approach to double materiality assessment that's fully aligned with current ESRS requirements and February 2025 regulatory landscape.

Core ESG Topic Assessment

E1: Climate Change

E1.1. How significant are your energy use and emissions?

Low energy use, mostly renewable, minimal emissions

Moderate energy use, some fossil fuels, managing emissions

High energy use, mostly fossil fuels, significant emissions

E1: Climate Change

E1.2. What do customers/suppliers expect regarding your climate action?

No pressure, or recognized as climate leader

Some questions about climate practices

Strong pressure to improve climate performance

E1: Climate Change

E1.3 How much do energy costs and climate regulations affect your expenses?

Low energy costs (<5% of expenses), minimal regulatory impact

Moderate energy costs (5-15%), some regulatory compliance needed

High energy costs (>15%), significant regulatory/carbon pricing impact

E1: Climate Change

E1.4. Could climate change affect your operations or customers?

Low risk, climate-resilient business model

Some risk, need to monitor climate impacts

High risk, climate change could disrupt business significantly

E2: Pollution

E2.1. How much pollution (air, water, soil, noise) do you create?

Minimal pollution, well-controlled processes

Some pollution requiring management and monitoring

Significant pollution affecting local environment

E2: Pollution

E2.2. How much waste does your business generate?

Minimal waste, good recycling/reuse practices

Moderate waste, some recycling efforts

High waste generation, mostly sent to landfill

E2: Pollution

E2.3. What do you spend on waste disposal and environmental compliance?

Low costs (< 2% of expenses), minimal compliance requirements

Moderate costs (2 - 8%), regular compliance activities

High costs (> 8%), complex compliance or cleanup required

E2: Pollution

E2.4. How likely are new environmental regulations to increase your costs?

Low risk, already meeting likely future standards

Some risk, may need upgrades in coming years

High risk, significant investments likely required

E3: Water & Marine Resources

E3.1. How much water does your business use?

Low water use, efficient systems

Moderate water use, some efficiency measures

High water use, water-intensive operations

E3: Water & Marine Resources

E3.2. Does your water use affect local availability or quality?

No impact on local water resources

Some impact, but manageable

Significant impact on local water availability/quality

E3: Water & Marine Resources

E3.3. What portion of your operating costs relate to water?

Minimal water costs (<1% of expenses)

Moderate water costs (1-5% of expenses)

High water costs (>5% of expenses)

E3: Water & Marine Resources

E3.4. Could water shortages or quality issues affect your operations?

Low risk, reliable water supply

Some risk, backup plans advisable

High risk, water constraints could shut down operations

E4: Biodiversity & Ecosystems

E4.1. How do your operations affect local ecosystems and wildlife?

Minimal land use, protect or restore natural areas

Moderate land use, avoid sensitive areas

Significant land use, may affect wildlife habitats or ecosystems

E4: Biodiversity & Ecosystems

E4.2. Do your products or services affect biodiversity?

Products/services protect or enhance biodiversity

Neutral impact on biodiversity

Products/services may harm wildlife or ecosystems (chemicals, clearing land, etc.)

E4: Biodiversity & Ecosystems

E4.3. What costs do you face from biodiversity regulations or land use restrictions?

Low costs, minimal regulatory requirements

Some costs for environmental permits or assessments

High costs due to protected species, wetlands, or habitat requirements

E4: Biodiversity & Ecosystems

E4.4. Could loss of natural services (pollination, water filtration, etc.) affect your business?

Low risk, not dependent on ecosystem services

Some risk, minor dependence on natural systems

High risk, business depends on healthy ecosystems

E5: Resource Use & Circular Economy

E5.1. How much raw materials and resources does your business consume?

Low resource use, mostly recycled/renewable materials

Moderate resource use, some recycled materials

High resource use, mostly virgin/non-renewable materials

E5: Resource Use & Circular Economy

E5.2. How long do your products last and what happens at end-of-life?

Durable products, designed for reuse/recycling

Standard products, some recyclability

Short-lived products, difficult to recycle or reuse

E5: Resource Use & Circular Economy

E5.3. How much do raw materials cost and how volatile are these prices?

Low material costs, stable prices or renewable materials

Moderate material costs, some price volatility

High material costs, volatile prices for critical resources

E5: Resource Use & Circular Economy

E5.4. Could circular economy practices (reuse, recycling, sharing) create business value?

Already implementing circular practices profitably

Some opportunities for circular practices

Limited circular economy opportunities or high transition costs

S1: Own Workforce

S1.1. How do your employment practices affect worker wellbeing?

Excellent conditions, happy employees, low turnover

Good conditions, generally satisfied employees

Poor conditions, unhappy employees, high turnover

S1: Own Workforce

S1.2. Do you provide training and career development opportunities?

Strong training programs, clear career paths

Some training provided, basic development opportunities

Minimal training, limited development opportunities

S1: Own Workforce

S1.3. How do employee-related costs affect your business?

Efficient workforce, low recruitment/training costs

Moderate workforce costs, some turnover management needed

High workforce costs due to turnover, absenteeism, or recruitment difficulties

S1: Own Workforce

S1.4. Could difficulty finding/keeping good employees hurt your business?

Low risk, good employer reputation, stable workforce

Some risk, competitive job market

High risk, struggling to find/keep skilled workers

S2: Workers in Value Chain

S2.1. What are working conditions like for your key suppliers?

Know suppliers have good working conditions

Assume suppliers meet basic standards, some checking

Don't know or concerned about supplier working conditions

S2: Workers in Value Chain

S2.2. Can you influence working conditions in your supply chain?

Strong influence, actively promote good practices

Some influence, occasionally discuss standards

Little influence, take suppliers as they are

S2: Workers in Value Chain

S2.3. Would requiring better labor standards increase your costs?

Minimal cost impact, suppliers already meet good standards

Some cost increase possible, manageable

Significant cost increase if stricter standards required

S2: Workers in Value Chain

S2.4. Could labor problems with suppliers disrupt your business?

Low risk, diversified suppliers with good reputations

Some risk, dependent on few suppliers

High risk, could lose key suppliers due to labor issues

S3: Affected Communities

S3.1. How do your operations affect the local community?

Positive impact, support local community

Neutral impact, no major community effects

Negative impact, community complaints or concerns

S3: Affected Communities

S3.2. Do you contribute to local employment and economic development?

Significant local employer, support local economy

Moderate local employment contribution

Minimal local employment, limited community economic benefit

S3: Affected Communities

S3.3. What do you spend on community relations or local requirements?

Minimal costs, good community relations

Some costs for community programs or requirements

High costs due to community issues or requirements

S3: Affected Communities

S3.4. Could community opposition affect your operations?

Low risk, strong community support

Some risk, need to maintain good relations

High risk, community opposition could disrupt business

S4: Consumers and End-Users

S4.1. How do your products/services affect customer health and safety?

Products/services enhance customer wellbeing and safety

Products/services are safe with proper use

Products/services have potential safety or health risks

S4: Consumers and End-Users

S4.2. Do your products/services improve or limit access to essential needs?

Improve access to important products/services for many people

Provide useful but non-essential products/services

May limit access or serve only wealthy customers

S4: Consumers and End-Users

S4.3. What do you spend ensuring product/service quality and safety?

Low quality costs, excellent reputation

Moderate quality assurance costs

High quality costs or frequent quality problems

S4: Consumers and End-Users

S4.4. Could customer safety or satisfaction issues hurt your business?

Low risk, excellent customer satisfaction and safety record

Some risk, need to maintain quality standards

High risk, customer issues could damage reputation significantly

G1: Business Conduct

G1.1. How do your business practices affect trust and fairness?

High ethical standards, build trust with all stakeholders

Generally ethical practices, meet basic standards

Ethical concerns, some questionable practices

G1: Business Conduct

G1.2. How open are you about your business practices and performance?

Very transparent, openly share information

Reasonably transparent, share required information

Limited transparency, minimal information sharing

G1: Business Conduct

G1.3. What do you spend on legal compliance and risk management?

Low compliance costs, simple regulatory environment

Moderate compliance costs, manageable requirements

High compliance costs, complex regulations

G1: Business Conduct

G1.4. Could ethical issues or legal problems hurt your business?

Low risk, strong reputation and compliance record

Some risk, need to maintain good practices

High risk, reputation damage could significantly hurt business

Industry-Specific Questions

Select which sector you are in

Agriculture / Food

Construction / Real Estate

Financial Services

Healthcare

Hospitality

Manufacturing

Professional Services

Retail / Consumer Goods

Technology / Software

None of the above

E5: Resource Use & Circular Economy

MAN 1: What is the environmental impact of your products throughout their lifecycle?

Products are environmentally beneficial or have minimal impact

Standard products with moderate environmental footprint

Products with significant environmental impact or disposal issues

E5: Resource Use & Circular Economy

MAN 2: How do your products affect technological or social progress?

Products drive positive innovation and social progress

Standard products, neutral innovation impact

Products may hinder progress or create new problems

E5: Resource Use & Circular Economy

MAN 3: How exposed are you to raw material price volatility?

Low exposure, stable material costs or good contracts

Some exposure, need to monitor material markets

High exposure, material costs significantly affect profitability

E5: Resource Use & Circular Economy

MAN 4: How could new manufacturing technologies affect your competitiveness?

Low risk, already using advanced technologies

Some risk, need to upgrade equipment periodically

High risk, technology changes could make operations obsolete

E5: Resource Use & Circular Economy

MAN 5: How efficiently do you use raw materials and manage production waste?

Highly efficient, closed-loop processes, minimal waste

Good efficiency, some waste reduction practices

Significant material waste, linear production processes

E5: Resource Use & Circular Economy

MAN 6: How much do regulations protecting ecosystems affect your raw material costs?

Highly efficient, closed-loop processes, minimal waste

Good efficiency, some waste reduction practices

Significant material waste, linear production processes

S4: Consumers and End-Users

TEC 1. How do your data practices affect user privacy and rights?

Excellent privacy protection, user control over data

Meet privacy regulations, standard data practices

Minimal privacy protection, extensive data collection

S4: Consumers and End-Users

TEC 2. How do your products affect digital accessibility and inclusion?

Significantly improve digital access for underserved groups

Standard accessibility, available to typical users

May worsen digital divide or exclude certain groups

S4: Consumers and End-Users

TEC 3. What do you spend on cybersecurity and data protection?

Low costs, excellent security already in place

Moderate costs for standard security measures

High costs due to security requirements or past incidents

S4: Consumers and End-Users

TEC 4. How could data protection regulations affect your business?

Low risk, already exceed likely future requirements

Some risk, may need to adapt to new regulations

High risk, significant compliance costs or business model changes

E5: Resource Use & Circular Economy

TEC 5. How much electronic waste do your products create and how long do they last?

Products designed for longevity, repairability, and recycling

Standard product lifecycle, some recycling support

Products contribute to e-waste, difficult to repair or recycle

E4: Biodiversity & Ecosystems

TEC 6. Do your operations or supply chains affect biodiversity through rare earth mining or habitat disruption?

Actively avoid supply chains that harm biodiversity

Some awareness of supply chain biodiversity impacts

Limited knowledge of hardware supply chain ecosystem impacts

S4: Consumers and End-users

FIN 1. How do your services affect people's access to financial services?

Significantly improve financial inclusion for underserved groups

Provide standard financial services to typical customers

Services may exclude or disadvantage certain groups

S4: Consumers and End-users

FIN 2. How do your lending/investment practices affect borrowers and society?

Responsible lending, positive social/environmental impact

Standard lending practices, basic risk assessment

Aggressive lending or investments in harmful activities

S4: Consumers and End-users

FIN 3. What do you spend on financial regulations and compliance?

Low costs, simple regulatory environment

Moderate costs, manageable compliance requirements

High costs, complex regulations, frequent changes

S4: Consumers and End-users

FIN 4. How could ESG factors affect your investment/lending portfolio?

Low risk, already consider ESG factors

Some risk, starting to integrate ESG considerations

High risk, portfolio exposed to ESG-related losses

E4: Biodiversity & Ecosystems

FIN 5. Do your investments or loans affect projects that impact biodiversity?

Investments actively support biodiversity conservation

Neutral impact, avoid financing harmful projects

Some investments may finance projects affecting ecosystems

E5: Resource Use & Circular Economy

FIN 6. How could the transition to circular economy affect your investment portfolio?

Portfolio benefits from circular economy trends

Neutral impact, diversified investments

Portfolio exposed to linear economy transition risks

S4: Consumers and End-users

RET 1. How transparent are you about your products' ingredients, origin, and impact?

Highly transparent, detailed product information available

Standard transparency, meet labeling requirements

Minimal transparency, basic information only

S4: Consumers and End-users

RET 2. How do your products and marketing affect consumer behavior?

Encourage positive consumer behavior and informed choices

Neutral impact on consumer behavior

May encourage overconsumption or poor choices

S4: Consumers and End-users

RET 3. How much of your costs come from your supply chain?

Low supply chain costs, simple sourcing

Moderate supply chain costs, some complexity

High supply chain costs, complex global sourcing

S4: Consumers and End-users

RET 4. How could changing consumer preferences affect your sales?

Low risk, products align with consumer trends

Some risk, need to monitor consumer preferences

High risk, consumer preferences shifting away from your products

E5: Resource Use & Circular Economy

RET 5. How much packaging and product waste do you create throughout the value chain?

Minimal packaging, circular product design, take-back programs

Moderate packaging, some recyclable materials

Excessive packaging, products designed for disposal

E4: Biodiversity & Ecosystems

RET 6. Do your supply chains affect biodiversity through land use or resource extraction?

Supply chains actively protect biodiversity, certified sustainable sourcing

Some biodiversity considerations in sourcing decisions

Limited knowledge of supply chain biodiversity impacts

S4: Consumers and End-users

HEA 1. How do your services affect people's access to healthcare?

Significantly improve healthcare access for underserved populations

Provide standard healthcare services to typical patients

Services may be limited to wealthy patients or create barriers

S4: Consumers and End-users

HEA 2. How do your practices affect patient health outcomes?

Excellent care, better outcomes than average

Good quality care, meet professional standards

Basic care, some quality concerns

S4: Consumers and End-users

HEA 3. What do you spend on healthcare regulations and quality standards?

Low costs, excellent compliance systems

Moderate costs for standard compliance

High costs due to complex regulations or past issues

S4: Consumers and End-users

HEA 4. How could medical errors or quality issues affect your business?

Low risk, excellent safety record and insurance

Some risk, standard malpractice insurance

High risk, past incidents or high-risk procedures

E5: Resource Use & Circular Economy

HEA 5. How much single-use medical equipment and supplies do you use?

Minimize single-use items, strong sterilization and reuse programs

Standard medical practices, some reuse where safe

High single-use consumption, limited reuse practices

E4: Biodiversity & Ecosystems

HEA 6. Do your pharmaceutical waste or practices affect local ecosystems?

No environmental impact and/or excellent pharmaceutical waste managemen

Standard waste disposal, minimal environmental risk

Some risk of pharmaceutical contamination in water/soil

S4: Consumers and End-users

AGR 1. How do your products affect consumer health and nutrition?

Products promote health, provide essential nutrition

Products are safe and meet basic nutritional needs

Products may contribute to health problems (high sugar/salt/fat)

S4: Consumers and End-users

AGR 2. Food System Impact: How do your practices affect the broader food system?

Practices improve food security and system sustainability

Standard practices, neutral food system impact

Practices may worsen food insecurity or system problems

S4: Consumers and End-users

AGR 3. What do you spend on food safety and quality control?

Low costs, excellent safety systems already in place

Moderate costs for safety compliance and testing

High costs due to safety requirements or past incidents

S4: Consumers and End-users

AGR 4. How could changing food regulations affect your business?

Low risk, already exceed likely future requirements

Some risk, may need to adapt to new regulations

High risk, significant compliance costs likely

E4: Biodiversity & Ecosystems

AGR 5. How do your agricultural practices affect local biodiversity?

Practices enhance biodiversity (organic, habitat creation, pollinator support)

Standard practices with some biodiversity consideration

Intensive practices that may harm biodiversity (monoculture, heavy pesticide use)

E5: Resource Use & Circular Economy

AGR 6. How efficiently do you use agricultural inputs and manage waste?

Highly efficient, circular practices (composting, minimal inputs, soil health focus)

Moderate efficiency, some waste reduction practices

High input use, significant agricultural waste

S4: Consumers and End-users

CON 1. How do your construction/building practices affect occupant safety?

Excellent safety standards, exceed building codes

Meet all building codes and safety requirements

Minimal safety standards, basic code compliance only

S4: Consumers and End-users

CON 2. How energy-efficient and sustainable are your buildings?

High-performance buildings, green certifications

Meet energy efficiency standards

Basic buildings, minimal efficiency features

S4: Consumers and End-users

CON 3. What do you spend on building codes, permits, and safety compliance?

Low costs, streamlined approval processes

Moderate costs for standard compliance

High costs due to complex regulations or past issues

S4: Consumers and End-users

CON 4. How could demand for sustainable buildings affect your business?

Low risk, already building sustainable properties

Some risk, may need to upgrade practices

High risk, market moving toward sustainability

E5: Resource Use & Circular Economy

CON 5. How much construction material waste do you generate and how do you manage it?

Minimal waste, high recycling, use reclaimed materials

Moderate waste with some recycling efforts

High construction waste, mostly sent to landfill

E4: Biodiversity & Ecosystems

CON 6. How much do environmental permits and habitat protection requirements cost you?

Low costs, projects avoid sensitive areas

Some costs for environmental assessments

High costs due to wetlands, protected species, or habitat requirements

S3: Affected Communities

HOS 1. How do your operations affect local culture and communities?

Celebrate and support local culture, hire locally

Respectful of local culture, some local engagement

May overwhelm local culture or provide minimal local benefit

S3: Affected Communities

HOS 2. How do your operations affect local tourism sustainability?

Promote sustainable tourism, protect local environment

Standard tourism practices, some sustainability efforts

High-impact tourism, strain on local resources

S3: Affected Communities

HOS 3. How dependent is your business on seasonal tourism patterns?

Low dependency, diversified revenue streams

Some seasonal variation, manageable fluctuations

High dependency, significant seasonal revenue swings

S3: Affected Communities

HOS4. How could negative reviews or incidents affect your business?

Low risk, excellent reputation and service standards

Some risk, need to maintain service quality

High risk, reputation damage could significantly hurt bookings

E4: Biodiversity & Ecosystems

HOS 5. How do your operations affect local natural areas and wildlife?

Protect and enhance local ecosystems, nature-based tourism

Minimal impact on local nature, basic conservation efforts

May disturb wildlife or damage natural areas

E5: Resource Use & Circular Economy

HOS 6. How much could reducing waste and improving resource efficiency save you?

Already highly efficient, minimal additional savings

Some savings opportunities from better resource management

Significant potential savings from reducing waste and resource use

G1: Business Conduct

PRO 1. How do your professional standards affect client outcomes and society?

Highest professional standards, significantly benefit clients and society

Meet professional standards, provide good service

Minimal standards, some ethical concerns

G1: Business Conduct

PRO 2. How do you contribute to professional knowledge and development?

Actively share knowledge, mentor others, advance profession

Participate in professional development, some knowledge sharing

Minimal knowledge sharing or professional development

G1: Business Conduct

PRO 3. What are your risks from professional errors or negligence?

Low risk, excellent track record and insurance

Moderate risk, standard professional insurance

High risk, complex work or past liability issues

G1: Business Conduct

PRO 4. How dependent are you on a few major clients?

Low dependency, diversified client base

Some dependency, but manageable client concentration

High dependency, losing major client would significantly hurt business

E5: Resource Use & Circular Economy

PRO 5. How much paper, energy, and resources do your office operations consume?

Highly efficient, paperless operations, renewable energy

Moderate resource use, some efficiency measures

High resource consumption, traditional office practices

E4: Biodiversity & Ecosystems

PRO 6. Do your client services affect projects that impact biodiversity or ecosystems?

Services help clients protect or enhance biodiversity

Neutral impact, services don't significantly affect ecosystems

Services may support projects that impact ecosystems

Compliance Gap Assessment (Yes/No Questions)

1. Materiality Process

Do you have a documented materiality assessment process?

Yes

2. Stakeholder Engagement

Have you engaged stakeholders in materiality assessment?

Yes

3. Governance

Do you have ESG governance structures in place?

Yes

4. EU Taxonomy

Have you assessed your activities against EU Taxonomy criteria?

Yes

Not Applicable

5. Sector Standards

Are you compliant with industry-specific ESG standards?

Yes

Partially

6. Due Diligence

Do you have due diligence processes for ESG risks in your value chain?

Yes

ESG Double Materiality Assessment - VSME Basic

ESG Double Materiality Assessment

Professional ESG Analysis for VSME Basic Companies

Double Materiality Matrix

High Materiality (≥4.0)

Medium Materiality (2.5-3.9)

Low Materiality (<2.5)

🎯 Material Topics & Key Actions

Complete the assessment form to see material topics and recommended actions

⚠️ Compliance Gaps

Assessment results will identify compliance gaps based on materiality

💡 Recommendations & Insights

Strategic recommendations will appear based on assessment results