The Omnibus proposal significantly changed the sustainability regulatory landscape in Europe. In this new context, the Voluntary Sustainability Reporting Standard for SMEs (VSME) gained additional relevance for small and medium-sized enterprises (SMEs).
Developed by EFRAG and published in December 2024, the VSME is a voluntary sustainability reporting standard that is simple and tailored to the needs of SMEs. Its main advantage is that it offers a practical solution for communicating sustainability performance and meeting the growing market demands for ESG information.
Although developed with SMEs in mind, the VSME can be used by any organization outside the scope of the Corporate Sustainability Reporting Directive (CSRD) that intends to disclose sustainability information. Furthermore, it aligns with key ESRS data points, enabling companies to provide relevant information to entities already reporting in accordance with the CSRD.
Its recognition was reinforced in 2025, when the European Commission officially adopted the VSME as a technical recommendation for voluntary adoption by SMEs. Thus, the standard establishes itself as a central tool for simplifying ESG information requests among companies, investors, and lenders, promoting transparency and trust throughout the value chain.
Structure of the Standard
The VSME is subdivided into two modules:
- Basic Module:Simplified reporting, recommended for microenterprises and constituting the minimum reporting module for SMEs.
- Comprehensive Module: Suitable for SMEs that need to respond to more detailed information requests from banks, investors, or other stakeholders.
This modular flexibility allows each company to adopt the reporting level best suited to its needs and gradually evolve depending on market demands and the maturity of its sustainability strategy.
Benefits of Adopting VSME
Implementing the voluntary standard brings multiple benefits to SMEs, including:
- Meeting the sustainability demands of large clients, investors, and banks;
- Facilitating access to financing and new business opportunities;
- Improving environmental and social risk management;
- Strengthening long-term competitiveness and resilience;
- Contributing to a more sustainable and inclusive economy;
- Strengthening corporate reputation;
- Anticipating future regulatory demands, preparing the company for potential developments in the European scenario.
Conclusion
VSME represents a strategic opportunity for SMEs: it simplifies sustainability reporting, brings organizations closer to CSRD requirements, and positions them more competitively in the market.
In a scenario where transparency and ESG information are becoming increasingly important, adopting structured reporting practices can be decisive in strengthening trust, attracting investment, and creating long-term sustainable value.