Who developed the VSME standard, and when was this ESG reporting framework launched?
The VSME standard was developed by EFRAG (European Financial Reporting Advisory Group) and published on 30 July 2025 by the European Commission as an official recommendation for SMEs. EFRAG is the same organisation that developed the ESRS standards for CSRD-compliant ESG reporting.
What is EFRAG?
EFRAG (European Financial Reporting Advisory Group) is the independent EU advisory body for financial reporting standards. It advises the European Commission on the development of accounting and sustainability reporting standards and has developed both the ESRS standards for CSRD as well as the VSME for SMEs.
When was the VSME published?
EFRAG presented the final draft of the VSME at the end of 2024. The European Commission followed on 30 July 2025 with an official recommendation to use the VSME as a voluntary standard for SMEs. Consequently, the VSME represents the first harmonised, EU-wide sustainability standard developed specifically for small and medium-sized enterprises.
Why was the VSME developed?
Large corporations subject to the CSRD require ESG data from their suppliers. This data must adhere to a standardized format. The VSME establishes this framework for SMEs – designed to be more streamlined than the ESRS for corporates, yet fully compatible to meet the ESG reporting requirements of the supply chain.
EFRAG and the European Commission published the VSME standard on 30 July 2025. Explore the background, development and core purpose of this framework for ESG reporting.