- Simplified sustainability reporting for SMEs: The Voluntary Sustainability Reporting Standard (VSME) standardizes ESG data, reducing the burden of uncoordinated requests.
- Supports green financing: VSME enhances SMEs’ access to sustainable finance, aligning with the EU’s SME Relief Package.
- Next steps include tools and guidance: EFRAG will provide digital tools, educational materials, and outreach to boost adoption.
EFRAG has delivered its technical advice on the Voluntary Sustainability Reporting Standard (VSME) for non-listed small and medium-sized enterprises (SMEs), a move set to streamline sustainability reporting and support SMEs in accessing green financing.
A Simplified Approach to ESG Reporting
The VSME, structured under Basic and Comprehensive Modules, replaces multiple uncoordinated ESG data requests with a standardized reporting framework. This is expected to address a significant portion of business partner requirements, including those from banks, investors, and large corporates.
Patrick de Cambourg, EFRAG SRB Chair, emphasized:
“VSME is designed to support the availability of simple but relevant sustainability-related data, reducing the burden for SMEs. With the right tools, it offers new business and financing opportunities while enhancing management insights.”
Enhancing Access to Sustainable Finance
The VSME aligns with the European Commission’s 2023 SME Relief Package, which highlighted the need for a voluntary standard to help SMEs transition to a sustainable economy. The standardized disclosures aim to create better opportunities for SMEs to obtain green financing.
Related Article: EU Commission Publishes EU Taxonomy FAQ to Simplify Sustainability Reporting
Chiara Del Prete, EFRAG SR TEG Chair, noted:
“The development of VSME has been a very enriching experience. I am grateful to all those who contributed and look forward to supporting SMEs with practical guides and promoting synergies to build a robust SME ecosystem.”
Next Steps for Broad Adoption
EFRAG plans to roll out additional resources in 2025, including digital tools, support guides, and outreach initiatives to facilitate market acceptance and uptake of the VSME.
With the VSME, EFRAG underscores its commitment to empowering SMEs in their sustainability journey, paving the way for improved access to green finance and a more sustainable economy.
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