The European Commission has adopted a voluntary sustainability reporting standard (VSME) aimed at easing the administrative burden for small and medium-sized enterprises (SMEs).

This new standard is designed to help SMEs:

• Respond more easily to sustainability information requests from large companies and financial institutions.
• Improve access to sustainable finance and better understand their own sustainability performance.
• Protect themselves from excessive information requests from value-chain partners, acting as a “cap” for non-mandatory reporters.

Key points:

• This recommendation applies to SMEs not covered by the Corporate Sustainability Reporting Directive (CSRD).
• It is an interim measure until the final voluntary standard is adopted through the upcoming Omnibus I simplification package.
• Larger companies and financial institutions are encouraged to use this standard when requesting sustainability data from SMEs.

This development is especially relevant for smaller brands and retailers in our national and regional associations who may face increasing sustainability reporting demands from partners.

We will continue to monitor and influence the progress of the Omnibus I negotiations and share updates on the final standard once adopted.

• Questions and answers: Recommendation on a voluntary sustainability reporting standard for small and medium-sized undertakings (VSME)
• Recommandations in EN, DE, FR

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