Your inbox tells the story: one client demanding Scope 1, Scope 2, and Scope 3 greenhouse gas emissions data; another requiring ESG policies before they will even consider your RFP; a third asking which framework you follow, the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), or the International Sustainability Standards Board (ISSB)... You are less than a 20-person company, not a multinational with a dedicated sustainability team. Where do you start?
If this sounds familiar, you are not alone. Much of the global mobility industry, particularly in Asia, comprises small and medium-sized enterprises (SMEs) that support multinational clients without having multinational resources. Yet expectations around sustainability reporting are rising fast, as Asian markets move steadily from voluntary disclosure toward mandatory requirements, often driven by global client standards rather than local regulation.
Against this backdrop, new ESG frameworks are finally emerging with SMEs in mind. In this article, we take a closer look at the European Financial Reporting Advisory Group’s (EFRAG) Voluntary Sustainability Reporting Standard for small and medium-sized enterprises (VSME), launched in 2025.
For Asia’s global mobility sector, where SMEs make up a significant share of service providers, this framework offers practical guidance as sustainability reporting expectations accelerate across the region.
Why this matters to Asian mobility providers
The reality is stark: Based on a 2024 survey by Schneider Electric, 78% of small businesses in Singapore reported having lost existing or prospective business opportunities due to stricter greenhouse gas (GHG) compliance standards and emissions reporting requirements. When multinationals relocate employees and need to report their carbon footprint, that data request cascades to every service provider in the chain: the DSP arranging home finding, the RMC coordinating moves, the shipping company transporting household goods.
Previously, SMEs faced conflicting requests. One client wanted carbon emissions using GHG Protocol. Another needed workforce diversity data aligned with GRI. A third demanded TCFD-compliant climate disclosures. VSME harmonizes these into a streamlined framework designed for companies with fewer than 250 employees, complementing emerging Asian frameworks like Malaysia's Simplified ESG Disclosure Guide (SEDG) and Singapore's SGX 27 Core Metrics.
The two-module approach
VSME's modular design provides flexibility. The Basic Module covers 11 core disclosures, including GHG emissions, water usage, waste management, workforce characteristics, health and safety, and anti-corruption. The Comprehensive Module adds 9 disclosures for banks, investors, and value chain partners, including climate transition plans, human rights policies, and climate risk assessments.
This mirrors Singapore's SME Sustainability Reporting Programme, which provides 70% funding support for companies to begin reporting with GRI and TCFD, starting with manageable metrics and building complexity over time.
Critical takeaways for global mobility
1. Carbon accounting is mandatory
VSME requires Scope 1 and Scope 2 GHG emissions disclosure using GHG Protocol methodology, calculated in tonnes of CO2 equivalent. For an industry built on moving people across borders, this is existential. Flight emissions, ground transportation, shipping, and temporary housing all contribute to relocation carbon footprints. The standard also introduces GHG intensity metrics (emissions divided by revenue), enabling meaningful comparisons across company sizes.
While Scope 3 emissions aren't mandatory in the Basic Module, the Comprehensive Module encourages reporting significant categories. For mobility providers, this includes business travel, employee commuting, and (for RMCs) downstream emissions from coordinated relocations.
2. Geolocation reveals risk
VSME requires geolocation coordinates for all sites owned, leased, or managed. This enables climate and biodiversity risk assessment using tools like the World Database on Protected Areas.
For mobility providers, this answers critical questions: Is temporary housing in flood-prone areas? Are warehouses in water-stressed regions? Do operations border biodiversity-sensitive zones facing future restrictions? In Asia-Pacific, where typhoons, flooding, and extreme heat are increasingly material, understanding geographic exposure is essential risk management.
3. Start with available data
VSME's pragmatism shines in data collection guidance. Can't separate renewable from non-renewable energy? Report what's on your utility bill. Operating in co-working space without direct metering? Use estimation formulas based on employee count and occupancy.
The standard provides calculation methods for shared facilities, acknowledging SME resource constraints. Begin with readily available data (business travel emissions, office energy, employee metrics) rather than waiting for perfect measurement systems. This mirrors Malaysia's SEDG and the Philippines' SuRe Form philosophy: make reporting accessible.
4. Workforce metrics matter
Social metrics carry competitive significance: employee breakdown by contract type and gender, turnover rates (50+ employees), recordable accidents and fatalities, gender pay gap (150+ employees, reducing to 100+ from 2031), collective bargaining coverage, and training hours per employee.
In global mobility, where cultural competence and local knowledge are differentiators, high turnover undermines service quality. These metrics align with Singapore's SGX 27 Core Metrics and demonstrate the workforce stability clients increasingly demand.
5. Human rights due diligence
The Comprehensive Module asks pointed questions: Does your code of conduct cover child labor, forced labor, trafficking, discrimination, and accident prevention? Do you have workforce complaints mechanisms? Are you aware of confirmed incidents in your value chain?
For RMCs coordinating with movers, real estate agents, immigration specialists, and language schools across borders, this extends to supply chain monitoring. The standard doesn't expect perfect visibility but does require policies and processes for identifying risks, aligning with growing Asian regulatory focus on modern slavery and forced labor.
6. Leverage digital tools
EFRAG provides Excel templates and XBRL taxonomy supporting VSME reporting, with multilingual versions planned. These tools dramatically reduce consulting costs traditionally associated with sustainability reporting. An SME can download templates, input data, and generate standardized reports satisfying multiple stakeholders.
This mirrors Singapore’s SME Sustainability Reporting Programme (SME SRP) approach, providing practical tools and funding. The message: start now with available resources rather than waiting for perfect systems.
The Asian context
While European in origin, VSME's principles resonate with Asia's sustainability landscape. Singapore's ISSB Standards (IFRS S1 & S2) adoption mirrors VSME's structured disclosure approach. Malaysia's SEDG shares its simplified, proportionate philosophy. The Philippines' SuRe Form demonstrates that accessible templates drive SME adoption.
Mandatory requirements for listed companies are trickling down through supply chains. That 78% statistic about Singapore businesses losing contracts isn't theoretical. Voluntary frameworks like VSME are business survival tools.
Call to action
Practical first steps for SME mobility providers:
- Measure carbon footprint using GHG Protocol (minimum Scope 1 and 2)
- Review workforce metrics for diversity, health and safety, and training gaps
- Map value chain for human rights and environmental risks
- Identify material issues relevant to your business model
- Leverage existing certifications (ISO 14001, EMAS, quality systems)
- Explore support programmes like Singapore's SME SRP
- Engage clients about their sustainability data requirements
- Start with basic metrics and build progressively.
ESG reporting is shifting from compliance exercise to commercial imperative. RMCs and DSPs embracing sustainability reporting today become preferred partners tomorrow.
In a region where requirements multiply (ISSB adoption in Singapore, SEDG in Malaysia, enhanced ASEAN climate disclosure), early movers gain competitive advantage.
In global mobility, where trust and transparency are fundamental, leading on sustainability isn't just good practice. It's good business.
References
European Financial Reporting Advisory Group (EFRAG). (2024). VSME Standard: Voluntary Sustainability Reporting Standard for non-listed SMEs. Retrieved from https://www.efrag.org/sites/default/files/sites/webpublishing/SiteAssets/VSME%20Standard.pdf
Capital Markets Malaysia. (n.d.). Simplified ESG Disclosure Guide (SEDG). Retrieved from https://sedg.capitalmarketsmalaysia.com/
Enterprise Singapore. (n.d.). SME Sustainability Reporting Programme. Retrieved from https://www.enterprisesg.gov.sg/grow-your-business/boost-capabilities/sustainability/sme-sustainability-reporting-programme
European Financial Reporting Advisory Group (EFRAG). (n.d.). SMEs and Sustainability Reporting. Retrieved from https://www.efrag.org/en/smes-and-sustainability-reporting
Presgo. (n.d.). SEC Sustainability Reporting Philippines. Retrieved from https://www.presgo.com/frameworks/sec-sustainability-reporting-philippines/
Schneider Electric. (n.d.). Majority of companies in Singapore yet to fully measure supply chain emissions: Schneider Electric survey. Retrieved from https://www.se.com/sg/en/about-us/newsroom/news/press-releases/majority-of-companies-in-singapore-yet-to-fully-measure-supply-chain-emissions-schneider-electric-survey-6673a1ec7feca681040a2c21
Singapore Exchange (SGX). (n.d.). Sustainability Reporting. Retrieved from https://www.sgx.com/sustainable-finance/sustainability-reporting
