Overview of EU's voluntary standards for ESG reporting for non-listed SMEs
Updated March 20th, 2025
EU has developed a voluntary ESG reporting standard (Environmental, Social, and Governance) aimed at non-listed small and medium-sized enterprises (SMEs). This standard helps SMEs meet requirements from larger customers, partners, investors, and banks.
What Does the Standard Consist Of?
The VSME standard consists of two modules:
1. The Basic Module
- Contains 11 sections (B1-B11), covering general information, environmental, social, and governance data.
- Designed as a minimum requirement for SMEs, particularly micro-businesses.
- Primarily quantitative, with qualitative elements included.
Note: Valified’s platform is continuously updated to guide companies on how to report using the latest 2024 version of the standard. We will implement updates as they are released and integrate the final version once adopted.
2. The Comprehensive Module:
- Contains 9 additional sections (C1-C9).
- Provides more detailed information for financial partners, investors, and large customers.
- Includes strategic initiatives, risk assessments, GHG reduction targets, and additional social indicators.
Who Can Use the Standard?
The standard is voluntary and designed for non-listed SMEs that are not subject to the Corporate Sustainability Reporting Directive (CSRD).
It is particularly relevant for companies that want to strengthen their sustainability profile when engaging with business partners.
Learn more about the Basic Module here and Comprehensive Module here.
Read More:
EFRAG's Document on the Voluntary Standards (december 2024)
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