Limited appetite for voluntary SME sustainability reporting
The European Financial Reporting Advisory Group (EFRAG) has reported limited interest in its Voluntary Sustainability Reporting Standard for SMEs (VSME), following outreach on a proposed template aimed at SMEs and start-ups. Feedback suggests that many smaller entities remain cautious about adopting additional voluntary disclosures, particularly where perceived benefits are unclear or resources are constrained.
Voluntary reporting via the VSME is intended to feed into the European Single Access Point (ESAP). While ESAP is designed to improve the availability of structured, comparable corporate data across the EU, its effectiveness depends on the breadth and quality of data available.
This underlines the difficulty of relying on voluntary frameworks to deliver consistent, decision-useful data at scale. Without clear requirements, uptake is rarely at the level required to support meaningful comparability.
Looking ahead, simplified frameworks, better alignment with existing reporting processes, and the growing role of AI-assisted reporting and taxonomy navigation may help lower barriers for SMEs to engage in structured digital reporting. In the meantime, the results may reinforce the case for proportionate, mandatory approaches for businesses in scope, to ensure consistent participation and high-quality data across the ecosystem.
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