Simplifying Sustainability Reporting: Voluntary Sustainability Reporting Standard For SMEs (VSME)

The European Commission adopted on 30 July 2025 a recommendation introducing a voluntary sustainability reporting standard for small and medium-sized enterprises (SMEs), known as the Voluntary Standard for SMEs (VSME).

The VSME has been developed by EFRAG and is available in three language versions: English, French and German.

This standard aims to help SMEs respond to sustainability information requests from financial intermediaries and undertakings subject to mandatory reporting under the Corporate Sustainability Reporting Directive and which have SMEs in their value chains.

Accordingly, the Commission recommends that non-listed SMEs and micro-undertakings wishing to voluntarily report sustainability information do so in accordance with the VSME set out in Annex I to the recommendation. Undertakings applying the standard set out in Annex I to report sustainability information voluntarily may also use the practical guidance included in Annex II.