Download and read the EFRAG VSME Report for non-listed SMEs with framework and guidelines, released December 2024 (#weekendread)
The European Financial Reporting Advisory Group (EFRAG) has released the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME), providing smaller businesses with a structured framework for disclosing sustainability information. This follows a public consultation conducted from January to May 2024, which gathered feedback from SMEs, banks, accountants, and industry associations. The final standard incorporates simplifications based on this feedback and was formally approved in November 2024.
Key features of the VSME
- Flexible reporting modules – The VSME includes a Basic Module and a Comprehensive Module to meet diverse business needs.
- Enhanced access to green finance – Standardized sustainability disclosures aim to streamline ESG data requests and improve SMEs’ chances of securing sustainable funding.
- Market-driven adaptability – Designed to replace uncoordinated ESG questionnaires, easing the reporting burden on small businesses.
Next steps and implementation
EFRAG plans to support SMEs with digital tools, guidance materials, and outreach events in 2025 to encourage adoption. These initiatives will ensure broad market acceptance and help businesses align with sustainability goals while improving access to finance.
Patrick de Cambourg, the EFRAG SRB Chair, commented:
The issuance of the VSME confirms EFRAG’s commitment to contribute to a more sustainable economy. VSME is designed to support the availability of simple but relevant sustainability-related data.. It aims at reducing the burden for SMEs currently confronted with multiple uncoordinated data requests and, when supported by the appropriate online platforms and tools, will offer new business and financing opportunities as well as additional management insight to the reporting companies.
Chiara Del Prete, the EFRAG SR TEG Chair, commented:
The development of VSME has been a very enriching experience. We received strong support from all the stakeholder categories along all the steps of our due process. I am grateful to all those that contributed and I am looking forward to continuing to support SMEs with practical guides, promoting synergies between the various initiatives that are developed and contribute to the emergence of a robust SME ecosystem.
Download the VSME Report and Guidelines
