EU: Voluntary Reporting Standard for SMEs Launched

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.

• 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