General Information: Basic Module
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The first two disclosures of the basic module, B1 and B2, cover general requirements that a reporting company should adhere to while disclosing sustainability information using the VSME standard.
B1 provides the basis for preparing the sustainability report while B2 requires companies to disclose the policies, actions and targets they have put in place to enable the transition towards a sustainable economy.
A reporting company should disclose whether it has used the basic module (option 1) or both the basic module and the comprehensive module (option 2) to prepare its sustainability report.
The company should disclose the omissions of any disclosure that is deemed classified or contains sensitive information.
The company should also disclose whether the sustainability report has been prepared on an individual basis (the sustainability information is only for the company) or consolidated basis (the sustainability information includes information from subsidiaries). In case of the latter, the company should include a list of its subsidiaries as well as their official addresses.
Additionally, the company should disclose the following:
its legal form 1;
NACE sector classification code(s)2;
size of the balance sheet (in Euro);
turnover (in Euro);
number of employees in headcount or full-time equivalents;
country of primary operations and location of significant asset(s); and
geolocation of sites owned, leased or managed.
When reporting on its legal form, the company can choose from one of the following structures: private limited liability company, sole proprietorship, partnership or cooperative. If the legal form does not fall into any of these categories, it should be specified based on the specifications of the country where the company is based.
Full-time equivalent or FTE is a unit to measure employed persons in a way that makes them comparable, although they may work or study a different number of hours per week. It can be calculated by dividing an employee’s scheduled hours (total effective hours worked in a week) by the employer’s hours for a full-time workweek (total hours performed by full-time employees). For example, an employee who works 25 hours every week for a company where the full-time week is 40 hours represents a 0.625 FTE (i.e. 25/ 40 hours).
When disclosing information on sites owned, leased or managed, the reporting company should provide the address, postal code, city, country and geolocation coordinates.
Geolocation is the process of identifying the physical location of something (in this case a site or asset) using technology. This location is usually expressed in terms of coordinates (like latitude and longitude) or an address. Geolocation is valuable for stakeholders, especially when assessing the risks SMEs are likely to face and the opportunities they can pursue, particularly in relation to climate change adaptation, water, ecosystems and biodiversity. The geolocation of a site can be provided in spatial points for single units or polygon points defining the boundaries of a larger, less unit-like site, such as a farm, mine or facility. The reporting company may also provide a cluster of points to allow for easy identification of the concerned area. The spatial points should be provided as coordinates, with five decimal places. The company may use web mapping tools (e.g. google maps, apple maps) to identify the coordinates of sites that it owns, leases or manages. It may also use any appropriate software tools or platforms to further establish the perimeter or area of larger sites.
If the company has obtained any sustainability-related certification or label, it should provide a brief description including details on the issuer of the certification or label, date and rating score. Sustainability-related certification can include registered eco-labels from an EU, national or international labelling scheme, corresponding to the main activity of an SME. For instance, the EU Ecolabel covers specific products, such as textiles and footwear, coverings (e.g. wood floor coverings), cleaning and personal care products, electronic equipment, or furniture.
The company should disclose whether it has put in place practices, policies, targets and future initiatives that will enable the transition towards a more sustainable economy.
In this context, practices may include measures to reduce its water and electricity consumption, its GHG emissions, prevent pollution, improve the working condition of its workforce, enhance equal treatment at the workplace, train its workforce, etc.
The company should disclose whether it has prepared sustainability policies and whether they are in the public domain.
Targets are used to monitor the implementation of the policies and the progress achieved towards meeting these targets.
The company should also disclose the measures it takes to reduce its negative impacts and enhance positive impacts on people and the environment, in order to contribute to a more sustainable economy.
If the company chooses to also report on the comprehensive module, it should complement the information found under this disclosure with the datapoints found in C2.
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Footnotes
A “legal form” refers to the specific structure or type of business entity under which a company or organization operates, such as a sole proprietorship, partnership, or corporation, which dictates its legal status, liability, and tax obligations.↩︎