Policy
EU Adopts Voluntary Sustainability Standard for SMEs
Francesca Ventimiglia•Jul 30, 2025
2 minutes
The European Commission officially adopted EFRAG's Voluntary SME Sustainability Standard (VSME) on July 30, 2025. This simplified framework helps companies with fewer than 250 employees report sustainability data to banks, customers, or investors.
Why It Matters
The VSME provides a single recognized format, saving time for SMEs that currently face multiple, conflicting sustainability questionnaires.
How It Works
- Modular Approach: Choose between the Basic Module (12 core indicators) or the Comprehensive Module.
- Simplified: No complex materiality assessments required.
- Accessible: Free templates and guides are available in multiple languages.
- Self-Declaration: No external assurance is required.
Future Outlook
If the Omnibus proposal passes, this standard may extend to companies with up to 1,000 employees and set a "data cap" on what larger companies can request from smaller suppliers.
Resources
EFRAG VSME Webpage (Support materials and digital templates)
European Commission VSME Page (Official publication and Q&A)