VSME in Action: Empowering SMEs for a Sustainable Future

On April 7, 2025, EFRAG hosted a groundbreaking hybrid event in Brussels, titled "VSME in Action: Empowering SMEs for a Sustainable Future." The event attracted 60 in-person attendees and over 1,500 online participants, showcasing the growing interest in sustainable practices for SMEs.

The primary goal of the event was to promote the VSME (Voluntary Sustainability for Micro and Small Enterprises) Standard as a unified framework for sustainability reporting. This initiative aims to alleviate the reporting burden on SMEs by replacing fragmented questionnaires with a streamlined approach, while enabling them to contribute to Europe’s ambitious sustainability goals.

Key Highlights from the Event

1. Opening Remarks by Patrick de Cambourg

Patrick de Cambourg, Chair of the EFRAG Sustainability Reporting Board, emphasized the VSME’s role in supporting SMEs with fewer than 250 employees. The VSME Standard is tailored to the unique needs of small businesses, ensuring proportionality and simplicity in sustainability reporting.

2. Insights from DG FISMA and DG GROW

Sven Gentner (DG FISMA) and Ulla Hudina (DG GROW) underscored the importance of the VSME in reducing administrative burdens while fostering access to green finance. They highlighted the European Commission’s plan to endorse the VSME Standard as a recommendation by June 2025, with translations available in all EU languages.

3. Presentation of the VSME Ecosystem

Led by Chiara Del Prete, the EFRAG Secretariat introduced the five deliverables of the VSME Ecosystem, which include digital tools, educational resources, and simplified reporting templates. These resources aim to make sustainability accessible for SMEs, many of which lack the resources to tackle complex reporting processes.

4. Industry Feedback and Recommendations

Representatives from SMEunited, EBF, and Accountancy Europe shared their insights on the challenges SMEs face in formalizing sustainability practices. They called for simplified guidance, sector-specific tools, and digital platforms to enhance the adoption of the VSME Standard.

5. Next Steps

The event concluded with a roadmap for future activities, including the release of a digital template for the VSME Standard, educational videos, and consultations with stakeholders. These steps aim to ensure widespread adoption and market acceptance of the VSME Standard.

Why VSME Matters

SMEs represent 99% of European businesses and are integral to achieving the EU’s sustainability objectives. The VSME Standard provides a practical starting point for SMEs to embark on their sustainability journey, offering tools and guidance that align with their operational scale.

As Europe moves toward a greener future, initiatives like the VSME Standard play a pivotal role in empowering businesses to contribute to climate neutrality while maintaining competitiveness.