The European Financial Reporting Advisory Group (EFRAG) published a progress report presenting early market feedback from its VSME Market Acceptance Survey, which assesses awareness, use and acceptance of the Voluntary Sustainability Reporting Standard for SMEs (VSME) as a voluntary sustainability reporting tool. The survey covered SMEs and key users of SME sustainability information, including financial institutions, business partners and value-chain actors. It finds growing awareness and generally positive market acceptance, with the VSME widely used as a guiding framework for collecting sustainability information. Reported benefits include improved access to finance, cost optimisation and strategic advantages, while challenges include limited training, unclear methodologies, insufficient supporting tools and the absence of a centralised digital repository. Respondents also pointed to a need for additional guidance on specific disclosures and sector topics, practical examples of completed VSME reports, accessible tools and a potential certification mechanism, alongside continued development of digital enablers such as the VSME Digital Template, more comprehensive lists of greenhouse gas calculators, and tools for water stress, biodiversity and geolocation. EFRAG plans to consider further practical guidance, potentially develop sector guidance in agreement with the European Commission, collect completed VSME examples, continue work on the VSME Digital Template, and further map digital tools and platforms for SME sustainability reporting. A second VSME Market Acceptance Survey is planned for 2026, in parallel with the European Commission’s intention to issue a voluntary standard in 2026 based on the VSME for companies outside the scope of the Corporate Sustainability Reporting Directive but with more than 250 employees.
European Financial Reporting Advisory Group 2025-12-16
European Financial Reporting Advisory Group publishes VSME market acceptance survey report on voluntary sustainability reporting for SMEs
EFRAG's progress report on its VSME Market Acceptance Survey shows growing awareness and positive acceptance of the Voluntary Sustainability Reporting Standard for SMEs. Benefits include improved access to finance and strategic advantages, while challenges involve limited training and unclear methodologies. EFRAG plans further guidance and digital tool development, with a second survey and potential voluntary standard by the European Commission in 2026.