20 December 2024
Background
On December 17, 2024, EFRAG released its technical advice on the Voluntary Sustainability Reporting Standard for SMEs (VSME), aligned with the European Commission’s 2023 SME Relief Package. The VSME aims to help SMEs access sustainable finance by introducing a standardized sustainability reporting framework.
Key Features
- Two modules exist:
- Basic Module: Simplified reporting suitable for most SMEs.
- Comprehensive Module: Tailored for the detailed needs of stakeholders like banks, investors, and large corporations.
- Objective: To streamline sustainability data reporting, reducing complexity caused by fragmented requirements.
Development and future steps
- Feedback: A public consultation held between January and May 2024 shaped the standard, incorporating input from SMEs, banks, and associations.
- Next Steps for 2025: Introduction of digital tools, guides, and events to support SMEs in adopting the VSME.
Why it matters?
The VSME seeks to simplify ESG data requests for unlisted SMEs, reducing costs and enhancing their access to lenders, investors, and clients.
How Nexia can help?
For a more in-depth discussion on how this topic could affect your business, please get in touch with our Nexia team.
