SME sustainability reporting
SME sustainability reporting explained simply: definitions, a step-by-step method, comparisons and regulatory monitoring. Clear, dated and sourced explanations – as of 8 November 2026.
The VSME (Voluntary Sustainability reporting standard for non-listed SMEs) is a European sustainability reporting standard tailored to unlisted small and medium-sized enterprises. Developed by EFRAG, it gives SMEs a common framework for communicating their environmental, social and governance information – without the burden placed on large groups.
This site is 100% editorial: no sales pitch, no forms, no canvassing. Just reliable reference points and links for further reading.
The VSME in three key ideas
It is voluntary
No law requires an SME to publish a VSME report. But a customer, a bank or a call for tenders may ask for one: voluntary in law, often necessary in practice.
It targets SMEs outside the CSRD
Following the ‘Omnibus’ reform, mandatory reporting is now limited to companies with more than 1,000 employees and more than €450 million in net turnover. The vast majority of SMEs remain outside its scope.
It is modular
A Basic Module (11 disclosures, B1 to B11) common to all, and a Comprehensive Module (9 disclosures, C1 to C9) for those who want to go further.
Where to start, depending on your profile
SME owner-manager, accounting firm, bank, client company or consultant: each approaches the VSME with their own questions. This visual guide points you to the right entry point.
Explore the subject through eight entry points
The VSME standard
Definition, Basic (B1-B11) and Comprehensive (C1-C9) Modules, and the status of the voluntary standard (VS).
Applying it in an SME
The step-by-step method for producing a first VSME report without getting overwhelmed.
For accounting firms
VSME as a new engagement for chartered accountants: scope of work, working file, value.
VSME & financing
What banks and investors look at, and why ESG data matters.
Value chain
The ‘value chain cap’ and the ESG questionnaires sent by client companies.
Comparisons
VSME compared with the CSRD, the ESRS, GRI, EcoVadis and ISO 26000.
Tools & software
EFRAG Excel template, XBRL taxonomy, platforms: what actually exists.
News & monitoring
Omnibus, VS delegated act: dated and sourced regulatory monitoring.
Key regulatory milestones
The essentials in thirty seconds
Official sources, nothing else
Every statement on this site is based on institutional sources: EFRAG, the European Commission and the Official Journal of the European Union. We date our analyses because the subject moves quickly – the delegated act creating the voluntary standard, for example, was adopted on 3 July 2026.
To keep up with developments, follow our News and regulatory monitoring page.
Sources and verification — checked on 8 November 2026
Every regulatory statement on this page has been checked against the official text. The references below allow you to verify them for yourself.
- Commission Delegated Regulation (EU) 2026/1560 of 3 July 2026 (adopted under reference C(2026) 5011), “supplementing Directive 2013/34/EU of the European Parliament and of the Council by establishing sustainability reporting standards for voluntary use by undertakings protected by the value chain cap” — legal basis: Article 29ca(1) of Directive 2013/34/EU. Published in the Official Journal of the EU (L series) on 21 September 2026, in force since 24 September 2026 (Article 4); its Article 3 (value chain cap) applies to financial years beginning on or after 1 January 2027. Official text on EUR-Lex · version adopted on 3 July 2026 (PDF, European Commission). Relevant provisions: Articles 1 (definition of the cap), 2(1) (who may apply the standard), 3(2) (the cap covers only the data points in Annex II), 4 (entry into force), recital 5 (end of the legal effects of the Recommendation, message to lenders and investors). Transmitted to the European Parliament and the Council on 3 July 2026 (Council document 11697/26 of 9 July 2026).
- Commission Delegated Regulation (EU) 2026/1563 of 3 July 2026 (adopted under reference C(2026) 5010, revision of the ESRS): reduces the number of mandatory data points by 61%. Published in the Official Journal of the EU on 21 September 2026; enters into force on 10 November 2026 (Article 3) and applies to financial years beginning on or after 1 January 2027. Official text on EUR-Lex · adopted version (PDF, European Commission).
- Recommendation (EU) 2025/1710 of 30 July 2025 (endorsement of EFRAG’s VSME), OJEU of 5 August 2025 — text on EUR-Lex. Recital 5 of Delegated Regulation (EU) 2026/1560 provides that it “should be considered as no longer producing legal effects” from the entry into force of that regulation, i.e. from 24 September 2026.
- Directive (EU) 2026/470 of 24 February 2026 (Omnibus I), published in the OJEU on 26 February 2026, entered into force on 18 March 2026 — text on EUR-Lex. National transposition due by 19 March 2027 at the latest.
- EFRAG — VSME/VS digital template and XBRL taxonomy, version 2.0.0 of 4 November 2026 (prepared in accordance with the voluntary standard (VS), Delegated Regulation (EU) 2026/1560 published in the Official Journal of the EU on 21 September 2026; it replaces version 1.3.0 of 11 June 2026, which EFRAG says should no longer be used) — EFRAG page.
A question about the timeline? We track the status of each text, with dates, in our regulatory watch.