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The European Commission has approved the new Voluntary Sustainability Standard for SMEs (VSME), published as Recommendation (EU) 2025/1710. This VSME European Commission 2025 offers small and micro-enterprises a simple and standardized framework to prepare their sustainability report, aligned with European regulation and with less administrative burden.
The VSME (Voluntary SME Standard) is a voluntary sustainability standard for SMEs and microenterprises.
It is not mandatory and does not require auditing: a self-declaration is sufficient. Companies can start applying it immediately to respond to clients, investors, and financial entities requesting ESG information.
The framework is structured in two modules:
Basic module (B1-B11): suitable for microenterprises, covers minimum information (company profile, energy, greenhouse gas emissions, water use, waste, policies, and workforce).
Complete module (C1-C9): designed for companies with more interaction with financial entities; includes strategy, climate risks, and value chain data.
The VSME emerges in parallel with the simplification of the CSRD (Corporate Sustainability Reporting Directive) and the Due Diligence Directive (CSDDD).
It is also aligned with the ESRS (European Sustainability Reporting Standards) applicable to large companies.
The objective is clear: reduce burdens and offer a proportional way for SMEs to also prepare sustainability reports according to the EU without excessive complexity. In the coming months, it is possible that the VSME will further adapt within this simplification of CSRD and ESRS reports for SMEs.
Adopting the VSME provides immediate benefits:
Administrative simplification: avoids having to respond to multiple different questionnaires.
Alignment with the EU: creates a common language with CSRD and ESRS.
Trust and transparency: positions the company in front of clients and investors as committed to sustainability.
Access to sustainable financing: facilitates banks and investors to assess ESG criteria.
In summary, the VSME is a practical tool and a strategic move to enhance the competitiveness of small and microenterprises.
To assist in its application, EFRAG has published free digital resources:
A digital VSME EFRAG template that guides data collection and presentation.
The XBRL taxonomy for sustainability reports, ensuring interoperability.
An online XBRL converter that allows data conversion and integration into digital systems.
🔗 Digital template and XBRL taxonomy - EFRAG
🔗 EFRAG XBRL Converter
