First Insights into the VSME Market Acceptance: Report Now Available
Explore early market feedback and practical uses of the VSME Recommendation in EFRAG’s new progress report on the VSME Market Acceptance Survey.
As part of its VSME Ecosystem work, and following the European Commission’s adoption of the VSME Recommendation on 30 July 2025, EFRAG conducted a survey to assess the current level of awareness and use of the VSME, as well as its acceptance as a voluntary sustainability reporting tool among SMEs and key users, including financial institutions, business partners and value-chain actors.
The report explores key dimensions such as general awareness of the European Commission’s Recommendation on the VSME, the implementation and practical application of the VSME Standard and its disclosures. It also highlights barriers and opportunities that could support broader adoption of the VSME Standard across Europe.
The VSME was developed by EFRAG and recommended by the European Commission for use by companies with less than 250 employees. Following the recent agreement on the Omnibus Directive, companies outside the scope of the CSRD but with more than 250 employees may report using a voluntary standard to be issued by the European Commission in 2026, which will be based on VSME.
Key takeaways from the survey
Market awareness and uptake
Growing awareness of the VSME Standard and generally positive market acceptance.
Widespread use of the VSME by users as a guiding framework for sustainability information collection.
Reported benefits
Improved access to finance, cost optimisation and strategic advantages for SMEs.
Identified challenges
Limited training, unclear methodologies and insufficient supporting tools.
Lack of a centralised digital repository to improve data usability.
Support needs and adoption levers
Strong demand for additional guidance, including on specific disclosures and sector-specific topics.
Calls for awareness-raising initiatives, such as examples of completed VSME reports, training sessions and best-practice cases.
Interest in free, accessible tools and a potential certification mechanism for VSME completion.
Digital enablers
Continued development of digital solutions seen as critical, including updates to the VSME Digital Template, a more comprehensive list of GHG calculators, and identification of tools for water stress, biodiversity and geolocation.
On the basis of these results, EFRAG will consider developing further practical guidance on specific disclosures (and possibly sector guidance in agreement with the European Commission), initiating a collection of practical examples of completed VSME reports to gather best practices, continuing work on the VSME Digital Template, and further mapping digital tools and platforms for SME sustainability reporting. EFRAG also plans to reassess progress through a second VSME Market Acceptance Survey in 2026.
To stay informed about EFRAG’s developments concerning the VSME Standard, visit EFRAG’s webpage & the ESRS Knowledge Hub, your new interactive platform to master sustainability reporting!