Brussels, 30 July 2025 – The European Commission has released a recommendation introducing a Voluntary Sustainability Reporting Standard for Small and Medium-sized Enterprises (VSME). Developed by EFRAG, this new standard is designed to simplify and harmonize how non-listed SMEs report on sustainability matters—particularly when responding to requests from large corporations and financial institutions.
Read the official announcement →
Summary
On July 30, 2025, the European Commission presented a recommendation for a voluntary sustainability reporting standard for SMEs. The VSME standard provides an intermediary, proportionate solution to help SMEs disclose ESG information without the complexity or cost of CSRD compliance.
This recommendation is part of a broader initiative to promote sustainability transparency across the value chain—especially for companies not covered by the mandatory CSRD requirements.
Key Points
- Voluntary and Proportionate: The VSME is a simplified, modular standard created specifically for non-listed SMEs that fall outside the CSRD scope.
- Responding to Market Demands: It enables SMEs to meet ESG data requests from larger companies, investors, and financial institutions in a standardized way.
- Aligned Information Requests: Large entities are encouraged to base their ESG inquiries on this standard, reducing fragmentation in supply chain reporting.
- Strategic Benefits for SMEs:
- Improved access to sustainable finance
- Enhanced monitoring of sustainability performance
- Increased resilience and competitiveness
- Policy Background: The Recommendation follows the Omnibus I simplification package (Feb 2025), which proposed CSRD apply only to large companies with 1,000+ employees.
- Temporary but Foundational: While the Recommendation is not legally binding, it sets the groundwork for a future delegated act. The final content and timeline may evolve based on EU legislative discussions.
How EcoActive ESG Can Support SMEs
At EcoActive ESG, we understand the unique challenges SMEs face when stepping into sustainability reporting. Whether you’re adopting the basic or comprehensive module of the VSME standard, our platform is built to make the process simple, affordable, and audit-ready.
With EcoActive ESG, you can:
- Use Pre-Built Templates
Quickly generate sustainability reports aligned with the VSME standard—no technical expertise required. - Auto-Tag & Classify Data
Leverage our AI-powered tagging engine to ensure consistent, structured ESG disclosures that meet both stakeholder and regulatory expectations. - Simplify Double Materiality
Run built-in materiality assessments to prioritize what matters—whether you’re using the basic or extended VSME module. - Collaborate Seamlessly
Engage internal teams, consultants, and stakeholders in real-time across ESG data inputs and reviews. - Export in Machine-Readable Formats
Generate disclosures in iXBRL or digital templates aligned with EFRAG’s XBRL taxonomy—futureproofing your reports for structured compliance. - Monitor & Improve Performance
Visual dashboards help you track ESG KPIs, set goals, and report progress—all in one place.
At EcoActive ESG, we stay on top of these shifts to help sustainability leaders stay ahead of evolving requirements—clearly, confidently, and with context.
