EFRAG has been tasked by the European Commission to develop a voluntary sustainability reporting standard for non-listed micro, small and medium enterprises (VSME).

EFRAG's work on this voluntary standard for non-listed micro, small and medium enterprises, falls outside the Corporate Sustainability Reporting Directive ('CSRD') (i.e. the VSME will not be issued as a Delegated Act). It stems from the market need to have a simple reporting tool to be used by SMEs to face growing sustainability data requests from business counterparties (i.e. banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner as well as to facilitate their participation in the transition to a sustainable economy. Based on market acceptance, the VSME is expected to standardise the current multiple ESG data requests (which represent a significant cost of preparation for non-listed SMEs), by reducing the number of uncoordinated requests they receive. This is expected to support them in having better access to lenders, investors and clients.

The VSME is a deliverable of the European Commission's SME Relief Package (September 2023) tasking EFRAG to develop a simple and standardised framework for SMEs to report on ESG issues, creating better opportunities to obtain green financing and thus facilitating the transition to a sustainable economy. In particular, in Action 14 of the SMEs Relief Package it is mentioned that the 'Commission will ensure that SMEs have a simple and standardized framework to report on ESG issues … ensuring the rapid delivery of voluntary standards for non-listed SMEs.'

Delivery and publication of the standard to the European Commission (17 December 2024)

On 17 December 2024, EFRAG delivered the VSME Standard along with the rest of the package to the European Commission.

Based on market acceptance, the VSME is expected to standardise the current multiple ESG data requests (which represent a significant cost of preparation for non-listed SMEs), by reducing the number of uncoordinated requests they receive. This is expected to support them in having better access to lenders, investors and clients.

VSME package delivered to the European Commission:


Educational Videos on the VSME Standard:

  • Highlights and introduction to the VSME: this introductory video provides a glimpse into the objectives, due process, the outcomes of the public consultation, the final VSME structure and the main underlying principles of the standard.

Presented By Chiara Del Prete (EFRAG SR TEG Chairwoman) and Elisa Bevilacqua (EFRAG Sustainability Reporting Senior Technical Manager).

Presented by Mathias Mingazzini (EFRAG Sustainability Reporting Junior Technical Manager).

Presented by Elisa Bevilacqua (EFRAG Sustainability Reporting Senior Technical Manager)


Feedback received from the public consultation:

Feedback VSME ED outside online survey:Feedback VSME ED outside online survey.zip

VSME letters uploaded via online survey:VSME letters uploaded via online survey.zip

VSME online survey responses:VSME online survey responses.xlsx


Publication of exposure draft (21 January 2024)

On 21 January 2024, EFRAG published its exposure draft of VSME (VSME ED or ED) designed to receive feedback from constituents on key aspects of the ED, including (i) the proposed architecture; (ii) the relevance of the proposed disclosures; (iii) the simplifications achieved; and (iv) the market acceptance. Based on market acceptance, the VSME is expected to standardise the current multiple ESG data requests (which represent a significant burden on non-listed SMEs), by reducing the number of uncoordinated requests they receive. This is expected to support them in having better access to lenders, investors and clients.


Consultation package:


Educational videos on VSME ED

Unofficial translations of VSME ED


Drafting of the VSME (Timeline from November 2022 onwards)

The VSME was discussed for the first time by SR TEG on 17 November 2022. The EFRAG SRB decided on 27 January 2023 to follow the building block approach. In particular, the EFRAG SRB discussed the need to develop a single standard for all SMEs; or two separate standards (ESRS LSME and VSME). The technical activities leading to the drafting of the two standards after this meeting showed that the differences in purpose and perimeter of application of the two respective standards require different approaches to the requirements. Merging of the two standards would have failed to meet the needs of the respective constituencies.

Successively, the content of VSME ED was discussed in nine EFRAG SR TEG Meetings and eight EFRAG SRB meetings. In addition, internal meetings with the EFRAG SME Expert Working Group and workshops with EFRAG VSME community and several stakeholders representing SMEs, banks and large corporates were held. The VSME ED was approved on the 8 November 2023 at EFRAG SR TEG and 29 November 2023 at EFRAG SRB.

Following this a public consultation phase of 120 days begun on 21 January 2024 and ended on 21 May 2024. During this public consultation phase EFRAG received input from 311 online survey respondents, 64 field test respondents and from an additional 22 comment letters received from outside the online survey. Among the respondents, platforms were also involved as a proxy of preparers and users. These platforms represented 23,000 SMEs across Europe and over 100,000 large undertakings worldwide.

The outcome of the public consultation was discussed at EFRAG SR TEG and EFRAG SRB in July 2024. Based on these discussions, strategic orientations were taken for the standard, including both overarching and disclosure level changes. The specific changes are described within the Basis for Conclusions.

Following the implementation of these changes discussed at EFRAG SR TEG and EFRAG SRB level in July 2024, the updated draft of the VSME after public consultation was tested with banking and SME representative associations, which validated these changes. The VSME Standard was then approved on 22 October 2024 by EFRAG SR TEG and on 13 November 2024 by EFRAG SRB.

For more specific details on the changes that occurred to the VSME, see the VSME's Basis for Conclusions.


EFRAG assumes no responsibility or liability whatsoever for the content or any consequences or damages direct, indirect or incidental arising from using these documents.