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Commission adopts VSME Recommendation establishing voluntary sustainability reporting standard for SMEs
EU Corporate Sustainability Reporting Directive (CSRD)European CommissionEU
Announced
Jul 30, 2025
Description
The European Commission adopted a Recommendation establishing a voluntary sustainability reporting standard for small and medium-sized enterprises (VSME). The standard is based on EFRAG's VSME standard delivered in December 2024. It includes a 'value chain cap' provision that protects companies with up to 1,000 employees from excessive sustainability information requests from companies subject to mandatory CSRD reporting. The standard will serve as the basis for a future delegated act under the CSRD for voluntary reporting by SMEs.
Sources
Key Findings
Commission adopts VSME Recommendation establishing voluntary sustainability reporting standard for SMEs
Background On 26 February 2025, the Commission adopted the Omnibus I simplification package which proposed to limit mandatory sustainability reporting under the CSRD to large companies with more than 1,000 employees. For companies with up to 1,000 employees, the Commission proposed a voluntary reporting standard which will be adopted by the Commission, based on the recommendation adopted today. This future voluntary
Commission adopts VSME Recommendation establishing voluntary sustainability reporting standard for SMEs
the connection between the VSME Recommendation, and the future voluntary standard proposed under the Omnibus I simplification package? On 26 February 2025, the Commission adopted the Omnibus I simplification package. Regarding the Corporate Sustainability Reporting Directive (CSRD), the Commission proposed to reduce the number of undertakings subject to mandatory sustainability reporting requirements to companies wit
Commission adopts VSME Recommendation establishing voluntary sustainability reporting standard for SMEs
lvlatviešu ltlietuvių humagyar mtMalti nlNederlands plpolski ptportuguês roromnă skslovenčina slslovenščina fisuomi svsvenska Business, Economy, Euro Finance # Commission presents voluntary sustainability reporting standard to ease burden on SMEs Recommendation ## Details Publication date : 30 July 2025 Author : Directorate-General for Financial Stability, Financial Services and Capital Markets Union ## Description [