Select a local version of the site

Select language

shot of glass buildings from the groundshot of glass buildings from the ground

EU: Voluntary Reporting Standard for SMEs Launched

August 05, 2025

GlobalAustriaBelgiumBulgariaCzech RepublicEstoniaFinlandFranceGermanyHungaryIrelandItalyLatviaLithuaniaLuxembourgNetherlandsPolandPortugalSlovakiaSpainSweden
GlobalAustriaBelgiumBulgariaCzech RepublicEstoniaFinlandFranceGermanyHungaryIrelandItalyLatviaLithuaniaLuxembourgNetherlandsPolandPortugalSlovakiaSpainSweden
Global
On July 30, 2025, the European Commission recommended a new Voluntary Sustainability Reporting Standard for SMEs that are out of scope of the Corporate Sustainability Reporting Directive (CSRD).  

The initiative is designed to help SMEs remain competitive within supply chains and improve access to green finance, without imposing the full compliance burden associated with more complex reporting frameworks. 

Developed by the European Financial Reporting Advisory Group (EFRAG), the standard provides a simplified framework to help SMEs meet growing demand for ESG data – particularly from larger companies and financial institutions subject to the CSRD. The recommendation is part of the broader Omnibus I simplification package and serves as a transitional measure to address market demands until a formal delegated act is adopted.

Although the new sustainability reporting standard is voluntary, SMEs that choose not to engage may face challenges in maintaining relationships with larger corporate partners, who require increasingly clear and consistent ESG data to meet their own regulatory obligations under frameworks like the CSRD. 
The simplified standards offer a clearer structure for integrating sustainability data across supply chains, improving consistency and reducing reporting friction.
To prepare, businesses should:
  • evaluate their current ESG data capabilities and identify gaps
  • consider adopting the basic module of the voluntary reporting standard
  • communicate with key partners about their ESG data needs
     
The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer.

Guides and Reports

Navigating EU Law

Key contacts

christianmense@eversheds-sutherland.com

Dr. Christian Mense

Partner

Munich, Germany

catherinedetalle@eversheds-sutherland.com

Catherine Detalle

Partner

Paris, France

sarahturner@eversheds-sutherland.com

Sarah E. Turner

Legal Director

United Kingdom

hollysuthren@eversheds-sutherland.com

Holly Suthren

Legal Director

United Kingdom

Latest Insights

Latest News

Latest Events

Curved modern skyscraper glass facade blue sky

legal updates

July 22, 2026

Commercially Connected shorts - 22 July 2026

47006486_l

legal updates

July 20, 2026

Industrials Unpacked #1: Supply Chain Contracts

grass and trees in a park

legal updates

July 17, 2026

EU Forced Labour Regulation

Modern Building

legal updates

July 17, 2026

EU MISP reforms: ESMA to supervise more firms

© Eversheds Sutherland 2026. All rights reserved. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed or affiliated firms and the members of Eversheds Sutherland (Europe) Limited and Eversheds Sutherland (Africa) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global entity. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client. For further information about these Eversheds Sutherland Entities and Eversheds Sutherlands’ structure please see the Legal Notices page of this website. For information on Konexo please also see the Legal Notices page of this website.