On July 30th, The EU Commission officially adopted a recommendation for voluntary sustainability reporting for small and medium-sized enterprises (SMEs). This recommendation promotes the use of the Voluntary Sustainability Reporting Standard for non-listed micro, small, and medium-sized enterprises (VSME), and its relevance is growing rapidly.
The recommendation marks an important milestone that help strengthen the credibility of the voluntary standard and represents a significant step toward broader market acceptance of the VSME framework.
According to the Commission’s press release, the standard is designed to ease the burden on SMEs and make it easier for SMEs to respond to specific requests for sustainability information.
The VSME standard is particularly useful for SMEs that are not covered by the Corporate Sustainability Reporting Directive (CSRD) but still need to respond to sustainability-related information requests from large companies and financial institutions.
Encouraging Use of VSME standard in Information Requests
The Commission encourages large companies and financial institutions to apply the principle of proportionality when engaging with SMEs and to show exercise restraint when requesting information from SME value chain partners.
According to the recommendation, large actors should, as far as possible, only request information that aligns with the requirements set out in the VSME standard.
The Commission also highlights the important role public authorities play in raising awareness and supporting adoption of the VSME standard. In this regard.
Use the NSRS Tool to Report in Line with VSME
To help SMEs get started we have developed the NSRS tool, a free excel-tool aligned with the VSME standard.
The NSRS tool is available at www.nsrs.eu and includes:
- Basic Module – Mandatory for all SMEs. Covers essential disclosures and is suitable for first-time reporters.
- Comprehensive Module – Recommended for SMEs engaging with banks, investors, or large corporate clients. Includes additional datapoints aligned with VSME expectations.
The tool is available in Norwegian and Swedish.
For Danish version we recommend virksomhetsguiden.dk
For English version we recommend EFRAGs Digital Template
Next Steps
In light of the EU Commission’s Omnibus I proposal, the Commission has announced its intention to adopt a future voluntary standard through a recommended legal act.
The recommendation issued in July serves as an interim solution to address current market needs until a delegated act on the voluntary standard is formally adopted. The timing of this formal adoption will depend on the outcome and pace of ongoing negotiations related to the Omnibus I proposal.