From Transparency to Action: How SMEs Translate VSME Reporting into Sustainability Practices
Authors
Ledet, Louise Kastor ; Voß, Ella Mai-Britt ; Pedersen, Stine Rye
Term
4. Term
Publication year
2026
Submitted on
2026-06-02
Pages
102
Abstract
Sustainability reporting means sharing information about environmental, social, and governance (ESG) issues. Although small and medium-sized enterprises (SMEs) are not required to report, they play an important role in the economy and in the value chains of larger companies. This thesis focuses on Danish, non-listed SMEs that use the voluntary VSME standard (Voluntary Sustainability Reporting Standard for SMEs). It examines how VSME reporting relates to companies’ sustainability practices and whether the reporting process builds knowledge, supports learning, and leads to changes in practice. The study is a multiple-case design based on interviews and VSME reports from seven Danish SMEs and two ESG consultants. First, it analyzes how the companies use VSME through the walk–talk–t(w)alk framework, which links what organizations communicate to what they actually do. All cases show a connection between reporting and practice, but the approach to reporting and the strength of the link vary. Next, using organizational learning theory, the study shows that SMEs can learn from the VSME process and use it to develop their sustainability practices. Finally, it identifies ways in which reporting can foster SME learning so that generated knowledge is used to go beyond transparency and improve practice. At the same time, the findings show that external factors outside SMEs’ control can limit learning and change. The thesis concludes that VSME reporting is connected to sustainability practices in all cases, and that learning from the process shapes practices in Danish SMEs. The extent of change depends on each organization’s context and its engagement with the reporting process.
Bæredygtighedsrapportering er deling af information om miljø, sociale forhold og ledelse (ESG). Selvom små og mellemstore virksomheder (SMV'er) ikke er forpligtet til at rapportere, spiller de en vigtig rolle i økonomien og i større virksomheders værdikæder. Dette speciale undersøger danske, ikke-børsnoterede SMV'er, der bruger den frivillige standard VSME (Voluntary Sustainability Reporting Standard for SMEs). Formålet er at forstå sammenhængen mellem VSME-rapportering og virksomhedernes bæredygtighedspraksis samt om selve rapporteringsprocessen skaber viden, læring og ændringer i arbejdet med bæredygtighed. Undersøgelsen er et multiple-case-studie baseret på interviews og VSME-rapporter fra syv danske SMV'er samt to ESG-konsulenter. Først analyseres, hvordan virksomhederne anvender VSME, ved hjælp af den teoretiske ramme walk-talk-t(w)alk, der kobler det, man kommunikerer, med det, man gør. Alle cases viser en forbindelse mellem rapportering og praksis, men tilgangen til rapportering og styrken af forbindelsen varierer. Dernæst belyses læring gennem teorier om organisatorisk læring, som viser, at SMV'er kan lære af VSME-processen og bruge den til at udvikle deres bæredygtighedspraksis. Afslutningsvis peger specialet på, hvordan rapportering kan understøtte SMV'ers læring, så den viden, der skabes, bruges aktivt til at gå ud over gennemsigtighed og forbedre praksis. Samtidig peger resultaterne på, at eksterne forhold uden for SMV'ernes kontrol kan begrænse læring og forandring. Konklusionen er, at VSME-rapportering hænger sammen med bæredygtighedspraksis i alle cases, og at læring fra processen former praksis i danske SMV'er. Hvor meget praksis ændres, afhænger af den enkelte organisations kontekst og dens engagement i rapporteringsprocessen.
[This apstract has been rewritten with the help of AI based on the project's original abstract]
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