Sustainability Data Now Expected from Small Enterprises
As sustainability becomes a strategic priority for investors, banks, supply chain partners, and public authorities, very small and micro-enterprises (VSMEs) are increasingly expected to disclose ESG information.
These disclosures are now used to assess eligibility for preferential financing terms, inclusion in sustainable procurement chains, and non-financial risk profiling. The new regulatory landscape — driven by increasing expectations for value chain transparency — demands that sustainability data be accessible and comparable, even for the smallest players in the market.
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👉 Read more about the final VSME standard released by EFRAG
What is the VSME Template?
The VSME template is based on the Voluntary Sustainability Reporting Standard for non-listed Small and Medium-Sized Enterprises, developed by EFRAG. It is a structured Excel-based tool designed to facilitate ESG disclosures for SMEs that are not in scope of the full ESRS standards.
The digital template was officially published on 27 May 2025, following the delivery of the VSME Standard to the European Commission on 17 December 2024. It is accompanied by an XBRL taxonomy and a digital converter, allowing for seamless data entry, internal validation, and export into machine-readable XBRL format.
A Practical Resource for Small Enterprises
The VSME template is ideal for businesses that have already begun integrating sustainability practices, offering a structured way to document their progress. It supports disclosures across various topics, including energy and emissions, biodiversity, workforce composition, and transition strategies — all formatted for clarity and regulatory compliance.
While the template itself is focused on structured data input and XBRL conversion, it is considered good practice for companies to also prepare a short accompanying sustainability report. This can enhance the visibility and accessibility of the information for external stakeholders, such as financial institutions, buyers, business partners, and potential investors.
Providing a readable narrative summary improves overall transparency, facilitates better understanding of performance and context, and supports alignment with sustainability-linked financing or procurement criteria.
Why This Release Matters
Key features of the VSME template include:
– Built-in validation for missing or incomplete values
– Structured disclosure points aligned with the ESRS logic
– Compatibility with EFRAG’s online XBRL Converter
– Accessibility via Excel, with open-source licensing for further customization.
This tool significantly reduces the administrative burden for smaller companies while promoting data comparability and interoperability across value chains and markets.
Planned Updates and Evolving Use
As ESG transparency expectations grow across all company sizes, the VSME template empowers smaller businesses to step into the sustainability reporting space with confidence and clarity.
EFRAG plans to release further updates and refinements in response to feedback, including future compatibility with multi-year reporting and integration into commercial ESG software solutions.
For additional details and downloads, see: https://www.efrag.org/en/news-and-calendar/news/release-of-the-vsme-digital-template-xbrl-taxonomy-converter
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