The VSME can be applied voluntarily by non-capital-market-oriented SMEs that are not subject to the reporting obligation under the CSRD. EFRAG expects the VSME to become a market standard in the future, making it easier for SMEs to meet the potential requirements of business partners (e.g. banks, investors and large companies) in a uniform manner.

To facilitate application, EFRAG will publish explanatory and training materials, organize events and provide tools and platforms.

No Decree as a delegated Act

As the VSME is a voluntary standard, it does not have to be adopted by the European Commission as a delegated act, unlike the European Sustainability Reporting Standards (ESRS), which are mandatory under the CSRD. The standard has therefore only been published in English and has not (yet) been translated into all official languages of the European Union.