Simplified EU sus­tain­abil­i­ty reporting framework released for SMEs

The Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) provides a simplified framework to support small and medium-sized enterprises in meeting ESG data requests. It introduces a two module structure tailored for companies with fewer than 250 employees, helping them respond efficiently to demands from larger companies, banks, and investors. Unlike mandatory frameworks, the VSME does not require a materiality assessment and allows companies to omit disclosures that are not applicable. EFRAG has developed digital tools such as an Excel template, XBRL taxonomy, and converter, and is preparing guidance and outreach activities to encourage adoption and alignment with broader EU sustainability frameworks.

Source: adapted from EFRAG, July 2025.