VSME reporting: three new tools introduced by EFRAG

VSME: towards a voluntary reporting standard

In December 2024, EFRAG developed the VSME Voluntary Sustainability Reporting Standard for non-listed SMEs (), a voluntary and simplified ESG reporting framework specially designed for non-listed SMEs (with fewer than 250 employees). By reducing the amount of ESG data to be presented in its reporting, it standardises the often abundant requests for data, which represent a significant preparation cost for the smallest structures. It contains a first compulsory module and a second, so-called complete module, which is optional. To date, its aim has been to help SMEs gain better access to lenders, investors and their customers.

In the coming weeks, the European Commission will be recommending that companies opting for a voluntary approach to sustainability reporting use the VSME framework as a basis. Ultimately, it will form the basis of a future voluntary standard for all companies not subject to mandatory sustainability reporting (CSRD report). This will be a harmonised EU-wide voluntary standard for all companies below certain thresholds, which are currently being discussed by the EU's co-legislators as part of the debates on the Omnibus package.

VSME Template and Taxonomy

EFRAG regularly develops tools to help SMEs understand and apply the VSME framework. At the end of May, the Advisory Group presented three new resources.

An Excel document to prepare your VSME report

EFRAG has produced an Excel document that can be downloaded from its website. It enables companies to prepare their VSME reporting by entering the information requested in four spreadsheets (general information, environmental information, social information, governance information). An explanatory note is also provided. The Excel file contains:

• checklists, tick-boxes and systems to enable users to determine the sustainability information to be presented in their voluntary report (including the semi-narrative information to be presented) and to validate it;

• hyperlinks to the VSME text (at paragraph level) to help you understand exactly what information you need to collect and present;

• a colour code to show the different categories of data points to be filled in (for example, basic/complete module);

• automatic total calculation systems and a fuel-to-MWh converter.

A VSME and XBRL taxonomy

The VSME XBRL taxonomy proposed by EFRAG also enables VSME information to be digitised, making it possible to report in different technical formats (Inline XBRL, XBRL-JSON, XBRL-CSV). The tool also facilitates the exchange of data and its import into different databases thanks to a structured, royalty-free and open format.

In addition, the EFRAG secretariat has developed a digital converter for VSME reports. This tool makes it easy to set up a digital XBRL report that can be read by both humans and machines.

Sophie Bridier