Voluntary Sustainability Reporting Standard for EU SMEs (VSME)

What is VSME?

VSME is a simplified voluntary sustainability reporting standard for SMEs is set to be published in 2026 and drafted in connection with the new EU directive (CSRD) aimed at increasing transparency about the impact of businesses on people and the environment.

Why is it needed?

The implementation of EU CSRD/ ESRS is expected to see increase in inquiries about their sustainability performance from business partners, lenders and investors. VSME aims to set a minimum level of sustainability reporting to support SMEs with communicating on their progress.

What are next steps?

Following VSME consultation that took place in the first half of 2024, the European Financial Reporting Advisory Group (EFRAG) has consolidated the comments and published the final standard in December 2024.

What does it contain?

Basic and a Comprehensive Modules including 20 sustainability disclosures, many of which companies likely already have in place and guidance on how to prepare them.

What are the next steps?

EFRAG will initiate activities to support SMEs with implementation, incl. issuance of additional guidance materials and monitoring emerging data tools and platforms.

How was Intently involved?

We participated in the public consultation and the field test together with Lausanne-based SME CompPair Technologies.

Further details:

https://www.efrag.org/sites/default/files/sites/webpublishing/SiteAssets/VSME Standard.pdf

https://www.linkedin.com/posts/justynatarwid_as-the-eu-develops-sustainability-reporting-activity-7189142121965051904-wHSC?utm_source=share&utm_medium=member_desktop