The European Commission supports SMEs in sustainability related reporting
Small and medium-sized enterprises obtain a new tool to facilitate reporting in the area of sustainable development. The European Commission approved a recommendation of a Voluntary Sustainability Reporting Standard (VSME) for the SME sector on 30 July 2025. The new initiative is meant to simplify and consolidate reporting on environmental, social, and governance activities.
Sustainable growth is no longer the domain of large corporations alone. In order to respond to the needs of the SME sector, the European Commission has passed a recommendation on the Voluntary Sustainability Reporting Standard for Small and Medium-sized Enterprises (VSME).
The VSME standard, developed by the European Financial Reporting Advisory Group (EFRAG), aims to simplify, standardise and offload SMEs in the area of ESG (environmental, social and corporate governance) reporting. Through it, companies will acquire a communication tool for business partners and financial institutions, without the hassle of filling out time-consuming forms.
The standard has been categorised into two detail levels:
- Basic module, containing key data required in most business relationships,
- Comprehensive module, for companies ready for more extensive disclosures.
Although the VSME is not yet a legally binding document, it is an essential transitional tool that the European Commission recommends for extensive use until it is approved as a delegated act under the CSRD reform.
Furthermore, the Commission encourages SMEs to implement the standard and large companies and financial institutions to limit their ESG data enquiries to the information specified in the VSME.
The documents are now available in a few languages:
- Original text (EN) – on the EFRAG website,
- EC Recommendation – on the European Commission website,
- Polish translation – prepared by the Ministry of Development and Technology, available on the ministry's website.
Please feel free to check out the details.
