SMEs and Sustainability Reporting
In November 2022, EFRAG launched a sustainability reporting initiative for SMEs, introducing a Voluntary Standard for SMEs (VSME) targeting those outside the scope of the CSRD.
Introducing the VSME – Simplified Sustainability Reporting for SMEs
Developed by EFRAG under a mandate from the European Commission as part of the 2023 SME Relief Package (Action 14), the Voluntary Standard for SMEs (VSME) offers a streamlined and easy-to-use sustainability reporting framework — designed specifically for non-listed SMEs.
What the VSME aims to achieve:
- Respond to data requests – Help SMEs provide reliable sustainability data to large companies
- Boost access to finance – Offer transparency for banks and investors to support funding opportunities
- Improve sustainability management – Equip SMEs to better handle environmental and social challenges in the short, medium, and long term
- Build a more inclusive economy – Support a greener, fairer future through SME participation
Key features of VSME:
- The VSME is voluntary
- Intended for companies with fewer than 250 employees
- Aligned with the European Sustainability Reporting Standards (ESRS)
- Covers the same Environmental, Social & Governance (ESG) topics
- Tailored to the size, capacity, and needs of SMEs
Simple. Focused. Built for SMEs. Explore here how the VSME can support your sustainability journey — without the complexity!
The European Commission's Recommendation on the VSME
More information can be found on the European Commission's webpage.
The VSME Standard (translated in all 24 EU languages) and the European Commission's Q&A
VSME Digital Template & XBRL Taxonomy – Enabling Digital Reporting for SMEs
As part of the broader VSME Ecosystem, EFRAG is driving forward digital sustainability reporting for non-listed SMEs.
The VSME Digital Template and its corresponding XBRL Taxonomy are being developed to support easy, structured, and technology-ready reporting – fully aligned with the VSME.
Support Material
GHG Emission Calculators for SMEs
EFRAG has identified a number of national or international tools that can help SMEs calculate their GHG emissions.
This identification and selection of tools has been based on a Call for Expression of Interest issued in February 2025. The selection of tools therefore remains preliminary. The analysis of the tools is being finalised and is expected to be published in September 2025. As the analysis is based on the input received from the call for expression of interest, EFRAG cannot guarantee the exhaustive nature of the list of tools identified.
These are typically free tools, either developed, managed or recognised by a national government. The tools are operational, and their accessibility has been tested by the EFRAG Secretariat. Please note, that EFRAG disclaims any responsibility for the technical quality of these tools, as they have neither been prepared nor reviewed by EFRAG. In addition, EFRAG will update this list periodically to include those tools identified in the mapping analysis that are still in the design phase. To note that emission factors are typically national, hence SMEs are expected to use GHG calculators in accordance with their country(ies) of operation(s).
Sector agnostic GHG Calculators:
Advanced Business Carbon Calculator (European Union) Available in English, EU27, Argentina, Brazil, Canada, Switzerland, China, UK, Hong Kong, Indonesia, India, Iceland, Japan, South Korea, Mexico, Norway, Russia, Saudi Arabia, Singapore, Türkiye, Thailand, United States, South Africa coverage
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| Bilan Carbone + (France) |
| Climate Compass (Denmark) |
Small Business Carbon Calculator Available in English, global coverage |
Sector Agnostic GHG Calculators:
| Climate Toolkit 4 Business (Ireland) |
| E-tool (version 3.0.0) (Germany and Austria) |
| ESG Kalkulátor (Hungary) |
| Huella de carbono de una organización. Alcance 1+2 (Spain) |
Sectorial GHG calculator:
Available in Dutch, English, French, German, Italian, Spanish, for the construction sector in the European Union.
The VSME Educational Videos
Learn the essentials of the VSME Standard through quick, easy-to-follow videos — now accessible in 17 languages, including French, German, Spanish, Italian, and more!
Series 1
Series 2
Start exploring today and build your understanding of VSME in your preferred language!
The VSME Ecosystem
To boost awareness, encourage adoption, and increase market acceptance of the VSME Standard, EFRAG has launched the VSME Ecosystem — a collaborative initiative designed to support non-listed SMEs on their sustainability journey.
This ecosystem is built around five key workstreams, each playing a vital role in making the VSME Standard practical, accessible, and impactful for SMEs across Europe.
SME Forum & VSME Community
SME Forum & VSME Community
- SME Forum: composed of representative organisations of preparers and users (banks, large undertakings), accountants, along with VSME platforms and a series of institutional observers (47 members in total). The Forum serves to increase awareness of VSME in addition to ensuring that Forum members promote the adoption of VSME and exchange practices on initiatives, educational material and other. The members also provide technical feedback on the supporting guides and education material being produced by EFRAG.
- VSME Community: composed of an over 500 members, that include single SMEs, regional SME representatives, accountants, single users, regional user representatives (banks, investors, large undertakings), platforms, academics, NGOs and many more. The community provides technical feedback on the supporting guides and education material being produced by EFRAG.
Mapping of existing VSME related tools and platforms
Mapping of existing VSME related tools and platforms
EFRAG is currently mapping existing tools (e.g. GHG calculators), platforms, and other initiatives currently being developed or already existing on the market (both public and private). EFRAG aims to understand market dynamics and alignment with the VSME to stimulate the up-take and ensure a coordinated adoption across Europe. The reports will tentatively be published in September 2025.
Outreach events and training sessions
Outreach events and training sessions
- To further boost market acceptance and understanding of the Standard by the market, EFRAG is involved in a series of outreach events and training sessions (videos). All of this material is AI-translated in 16 European languages.
- Outreach events: EFRAG has organised and participated in a series of outreach events (along with the European Commission). More information about past events, including recording can be found at this link. The last hybrid event “VSME in Action: Empowering SMEs for a Sustainable Future” took place at EFRAG on 7 April 2025.
- Training sessions: EFRAG has developed a series of videos explaining the Environmental, Social, and Governance (ESG) disclosures of the VSME, along with a second series of videos explaining the context and process used to develop the standard.
Measuring the VSME’s market acceptance progress
Measuring the VSME’s market acceptance progress
EFRAG has started monitoring the acceptance progress of the VSME. An acceptance survey will soon be launched.
VSME Supporting Guides
VSME Supporting Guides
- Digital Supporting Guides : EFRAG released the first version of the VSME Digital Template, XBRL Taxonomy and Converter on May 27, 2025, on EFRAG’s website. The aim is to support the SME ecosystem by offering a free, user-friendly technical reporting solution and educational materials.
- Complementary Supporting Guides
- EFRAG is also developing several Supporting Guides based on consultation feedback to help SMEs understand and implement specific disclosures. The current drafts include:
- C2 (Practices, Policies, and Future Initiatives): A series of examples of practices, policies and future initiatives (non-exhaustive, nor binding list), along with five case study examples for how SMEs could report on disclosure C2 (based on different industrial sectors)
- C3 (GHG Reduction Targets and Climate Transition): Includes a step-by-step guide, a visual flowchart, and contextual case studies to help SMEs set and disclose realistic climate goals.
C7 (Severe Negative Human Rights Incidents): Offers examples of Severe Negative Human Rights Incidents to help SMEs assess and report human rights risks.
These supporting guides are aimed to be released in autumn 2025.
Looking for more details on the VSME Standard?
Check out background and other key documents!
Visit the VSME Project Page to explore background information, such as:
- EFRAG's VSME Cover Letter to the European Commission (December 2024)
- The VSME version delivered to the European Commission (December 2024)
- The VSME's Cost-Benefit Analysis (December 2024)
- The feedback Statement from the Public Consultation (December 2024)
- The VSME Exposure Draft (January 2024)
- And preliminary meeting documents.
Discover EFRAG's simplified standard for Listed SMEs (LSME) under the CSRD.
Please note: the LSME standard is not included in the current Omnibus proposals.
