The fashion industry’s shift towards sustainability is no longer a "nice to have"—it’s a business necessity. With new EU regulations under the Corporate Sustainability Reporting Directive (CSRD), large fashion and lifestyle brands must report their environmental and social impact starting in 2025. But here’s the catch:
While CSRD doesn’t yet mandate SMEs to report, the Voluntary SME Standard (VSME) is a huge opportunity for fashion & lifestyle businesses to get ahead, build credibility, and become the preferred partners for larger brands.
- Many SMEs supply to these larger brands, meaning they will soon be required to provide Environmental and social performance data.
- If your company isn’t prepared, you risk losing business to competitors that are.
While CSRD doesn’t yet mandate SMEs to report, the Voluntary SME Standard (VSME) is a huge opportunity for fashion & lifestyle businesses to get ahead, build credibility, and become the preferred partners for larger brands.
What is the CSRD’s voluntary SME standard (VSME)?
CSRD introduces a standardized framework for corporate sustainability reporting across the EU. While large companies must comply, SMEs can voluntarily align with the VSME standard, which simplifies ESG reporting without the full regulatory burden.
For fashion and lifestyle SMEs, this means:
For fashion and lifestyle SMEs, this means:
- Better positioning in the supply chain by providing structured ESG data.
- A future-proof business as sustainability regulations expand.
- Operational efficiency by aligning sustainability efforts with business goals.
Why fashion & lifestyle SMEs should adopt the VSME now!
1. Meet the growing demand for ESG data from big brands
Larger fashion brands must report under CSRD and will require sustainability reporting figures from their suppliers (that’s you!).
Example: A fashion retailer committed to CO₂ reduction needs to know the carbon footprint of its supply chain—including the brands and manufacturers it sources from. If you can’t provide that data, they’ll choose a supplier who can.
2. Stay competitive & secure more business
Sustainability is a key differentiator. Brands that proactively report responsible business data will stand out from competitors who wait until it’s mandatory.
Example: If two similar SMEs pitch to a fashion brand, but one already tracks and shares its ESG progress, that brand gains credibility and trust.
3. Gain efficiency & business insights
Adopting VSME reporting helps SMEs:
4. Be a stronger business partner
Large brands are under pressure to work with responsible suppliers. By proactively aligning with CSRD standards, you:
Larger fashion brands must report under CSRD and will require sustainability reporting figures from their suppliers (that’s you!).
Example: A fashion retailer committed to CO₂ reduction needs to know the carbon footprint of its supply chain—including the brands and manufacturers it sources from. If you can’t provide that data, they’ll choose a supplier who can.
2. Stay competitive & secure more business
Sustainability is a key differentiator. Brands that proactively report responsible business data will stand out from competitors who wait until it’s mandatory.
Example: If two similar SMEs pitch to a fashion brand, but one already tracks and shares its ESG progress, that brand gains credibility and trust.
3. Gain efficiency & business insights
Adopting VSME reporting helps SMEs:
- Understand resource usage & costs (water, energy, materials).
- Improve supply chain transparency (know your Tier 2 & 3 suppliers).
- Streamline compliance with future regulations.
4. Be a stronger business partner
Large brands are under pressure to work with responsible suppliers. By proactively aligning with CSRD standards, you:
- Become a trusted, long-term partner for major fashion & lifestyle brands.
- Have a well-structured ESG strategy that improves business decisions.
- Avoid last-minute scrambles when brands request ESG data.
How RethinkRebels can help you?
At RethinkRebels, we help fashion & lifestyle SMEs:
We’ve worked with leading fashion brands such as Mexx, Scapino, Ziengs, and Wibra and SMEs to integrate sustainability seamlessly. Let’s make your business the next success story!
- Understand the VSME standard and how it applies to your business.
- Set up a streamlined ESG reporting system without adding complexity.
- Align sustainability strategies with client expectations and market trends.
- Ensure compliance with upcoming regulations so you stay ahead.
We’ve worked with leading fashion brands such as Mexx, Scapino, Ziengs, and Wibra and SMEs to integrate sustainability seamlessly. Let’s make your business the next success story!
Start Now: future-proof your fashion business
Don’t wait until brands demand ESG data—be ready before they ask. Aligning with CSRD’s Voluntary SME Standard now will put your business in a stronger position, secure better partnerships, and make sustainability a seamless part of your operations.
Want to learn more?
Contact us today or visit our website to see how we can help your SME lead the future of sustainable fashion!
Want to learn more?
Contact us today or visit our website to see how we can help your SME lead the future of sustainable fashion!