EFRAG has delivered: With its recommendation of July 30, 2025, the VSME standard (Voluntary Sustainability Reporting Standard for SMEs), which has been in development for some time, is now officially recommended as a voluntary ESG standard for SMEs – a milestone for Europe’s small and medium-sized enterprises.
The news:
The European Commission is following the recommendation of the EFRAG (European Financial Reporting Advisory Group) and is actively advocating the application of the VSME standard for the first time – especially for unlisted SMEs that want or need to report on their sustainability on a voluntary basis.
Although the standard was already known, it has only now been officially finalized, published, and recommended for use by EFRAG – including a practical basic module, additional module, and implementation guidance.
Why this is important:
✅ ESG reporting is becoming concrete—and feasible.
For SMEs, this means a uniform structure and no more patchwork solutions when it comes to ESG inquiries from banks, major customers, or investors.
✅ EFRAG recommendation = market signal.
EFRAG is the authoritative body for EU standards—its recommendations create trust, acceptance, and guidance for companies and data users.
✅ Cushioning trickle-down effects.
Large companies in the supply chain demand ESG data – with the VSME standard, SMEs can deliver in a structured and efficient manner without having to answer individual questionnaires.
✅ No testing effort.
The Commission makes it clear: self-disclosure is sufficient. This keeps the effort manageable—and the benefits high.
We will support you!
Whether it’s your first ESG report, supply chain requirements, or preparing for sustainable financing, we will guide you step by step through the application of the VSME standard.
Get in touch with us—we will show you how to apply the standard pragmatically and benefit from its application in a targeted manner. Schedule an appointment now!
The official VSME standard and application guides can be found here.
Conclusion:
With EFRAG’s official recommendation, the VSME standard has evolved from a draft to a genuine tool for thousands of SMEs in the EU. Anyone who needs to provide ESG data—whether for customers, banks, or their own transparency—now has a simple, practical format at their disposal. The call to market participants is clear: use the standard. Now.
