January 2, 2025
The new "Voluntary Reporting Standard for SMEs (VSME)" makes sustainability reporting easier
EU is heavily investing in green transition these years, partly by requiring companies to report on their sustainability profile.
The reporting requirements are enforced through the CSRD Directive (Corporate Sustainability Reporting Directive), which contains the concrete reporting obligations that companies in EU must comply with.
Initially, the CSRD directive has "only" targeted larger companies (500+ employees or €250 million+ in revenue). Over time, the directive will also cover smaller companies, which are already feeling the impact as larger trading partners demand or require production data from these smaller companies.
EFRAG issues new reporting standard for SMEs
The reporting that companies must comply with under the CSRD directive is supported by a set of standards called the "ESRS standards" (European Sustainability Reporting Standards).
These standards have been developed by EFRAG, an independent body supporting EU’s development of financial and non-financial standards.
In addition to the ESRS standards aimed at larger companies, EFRAG has now also released a set of standards guiding smaller companies in the sustainability reporting they face.
The new standards are called the "Voluntary Reporting Standard for SMEs" (VSME).
The standard is available as a PDF on EFRAG's website here: https://www.efrag.org/sites/default/files/sites/webpublishing/SiteAssets/VSME%20Standard.pdf
Read more about the VSME initiative and the ongoing development of the standard here: https://www.efrag.org/en/projects/voluntary-reporting-standard-for-smes-vsme/concluded
