The sustainability omnibus has significantly changed the sustainability reporting landscape but matters remain largely the same for SMEs. SMEs still face disparate requests from larger businesses and providers of finance for sustainability information and will often ask their accountants for help in dealing with these.
The VSME – a simplified sustainability reporting standard designed and developed by EFRAG for SMEs and micro entities – is expected to become the legal de facto reporting standard and value chain cap for all entities with fewer than 1000 employees on 19 July 2026. As the value chain cap, it represents the maximum amount of information that can be legally requested from SMEs (subject to sector specific sustainability information).
Once the VSME becomes the legal value chain cap, it is expected that it will become the basis for most sustainability information requests from value chain partners and providers of finance so it is very important that accountants are familiar with the standard to help their SME clients.
This hub links to key information that SMEs and their accountants need to effectively deal with sustainability requests and also to improve their business’ sustainability and sustainability reporting. EFRAG is very actively developing guidance and resources to spread awareness and ease the adoption of the VSME under the aegis of the SME Forum – of which Accountancy Europe is a member.
Apart from the standard itself, EFRAG has developed guidance for key VSME metrics, produced educational videos, lists software resources that are available, has prepared an Excel based VSME reporting template that can output into an XBRL Taxonomy. Tools and resources are constantly being added to and it is recommended that interested parties subscribe to their newsletter.
Starting on sustainability reporting is not a matter of just flicking a switch but rather requires organisational and cultural changes, the establishment of data sources and reporting structures and the allocation of precious resources – something that most SMEs have in short supply. Accountants can definitely help their clients with this process and Accountancy Europe has produced a number of documents designed to assist with this – the key ones being linked below.
Europe is not in a vacuum and there are other initiatives at a global level in this space. One of the most notable is the OECD’s Platform on Financing SMEs for Sustainability, which seeks to develop a global standard for sustainable finance information requests that is compatible with the VSME.
If you have any questions on the contents of this hub, you can contact our Senior Director Paul Gisby at [email protected]. Please note that we cannot provide assistance with individual sustainability reports or recommend specific accountants and software packages.
5-step starting guide to a sustainable transition for SMEs: the first 5 steps for SMEs to take in making their business sustainable (available in English, Italian and Romanian)
3-step sustainability assessment for SMEs: a sustainability assessment checklist to help SME’s accountants support their SME clients on the sustainability journey (English, Romanian, Norwegian, Turkish, Italian and Swedish)
SME risk management: sustainability: explore the opportunities and risks that small businesses face from sustainability issues
SMEs and Sustainability Reporting hub: this is the landing page for all of EFRAG’s work on SME sustainability related activities and support resources for the VSME. This page also hosts VSME Standard educational videos, links to GHG emissions calculators, three supporting guides of key VSME metrics and other useful resources
VSME standard: this links to the current VSME standard. It is anticipated that the VSME standard to be adopted in July 2026 will be very similar to this standard
VSME Digital Template and XBRL Taxonomy: an Excel based VSME reporting template together with a taxonomy tool that allows digitisation of VSME disclosures
OECD: Platform on Financing SMEs for Sustainability
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