EFRAG (European Financial Reporting Advisory Group) has officially released the Voluntary Sustainability Reporting Standard (VSME), aimed at non-listed micro SMEs.
This initiative is part of the European Commission’s SME Relief Package, aiming to simplify access to sustainable finance by standardizing sustainability reporting, thus fostering SMEs’ transition to a more sustainable economy.
Developed in response to the European Commission’s direct request, the VSME has undergone extensive consultations, receiving input from a broad spectrum of stakeholders including SMEs, banking sectors, and large corporates. This feedback has significantly shaped the VSME, leading to its approval in late 2024 after a series of revisions aimed at simplifying its adoption.
The VSME is structured to consist of a Basic Module and a Comprehensive Module, designed to meet a significant portion of the data requests SMEs receive from business partners like banks and investors. This structured approach promises to replace the currently fragmented ESG reporting landscape, potentially reducing the reporting burden on SMEs and enhancing their opportunities for green financing.
Patrick de Cambourg, Chair of the EFRAG SRB, emphasized the VSME’s role in supporting SMEs by offering relevant sustainability-related data, reducing administrative burdens, and opening new business and financing opportunities. Chiara Del Prete, Chair of the EFRAG SR TEG, also highlighted the strong support from stakeholders throughout the development process and expressed enthusiasm about continuing to aid SMEs with practical guides and tools.
Going forward, EFRAG plans to complement the VSME with digital tools, additional guidance, and educational materials aimed at facilitating its uptake. These initiatives are set to launch throughout 2025 and will include outreaches and awareness-raising events to ensure broad market acceptance and effective implementation of the standard.
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