Voluntary Reporting Standard for SMEs Launched


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The initiative is designed to help SMEs remain competitive within supply chains and improve access to green finance, without imposing the full compliance burden associated with more complex reporting frameworks. Developed by the European Financial Reporting Advisory Group (EFRAG), the standard provides a simplified framework to help SMEs meet growing demand for ESG data – particularly from larger companies and financial institutions subject to the CSRD. The recommendation is part of the broader Omnibus I simplification package and serves as a transitional measure to address market demands until a formal delegated act is adopted. Although the new sustainability reporting standard is voluntary, SMEs that choose not to engage may face challenges in maintaining relationships with larger corporate partners, who require increasingly clear and consistent ESG data to meet their own regulatory obligations under frameworks like the CSRD. The simplified standards offer a clearer structure for integrating sustainability data across supply chains, improving consistency and reducing reporting friction. To prepare, businesses should: evaluate their current ESG data capabilities and identify gaps consider adopting the basic module of the voluntary reporting standard communicate with key partners about their ESG data needs The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. 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On July 30, 2025, the European Commission recommended a new Voluntary Sustainability Reporting Standard for SMEs that are out of scope of the Corporate Sustainability Reporting Directive (CSRD).

The initiative is designed to help SMEs remain competitive within supply chains and improve access to green finance, without imposing the full compliance burden associated with more complex reporting frameworks.

Developed by the European Financial Reporting Advisory Group (EFRAG), the standard provides a simplified framework to help SMEs meet growing demand for ESG data – particularly from larger companies and financial institutions subject to the CSRD. The recommendation is part of the broader Omnibus I simplification package and serves as a transitional measure to address market demands until a formal delegated act is adopted.

Although the new sustainability reporting standard is voluntary, SMEs that choose not to engage may face challenges in maintaining relationships with larger corporate partners, who require increasingly clear and consistent ESG data to meet their own regulatory obligations under frameworks like the CSRD.

The simplified standards offer a clearer structure for integrating sustainability data across supply chains, improving consistency and reducing reporting friction.

To prepare, businesses should:

evaluate their current ESG data capabilities and identify gaps
consider adopting the basic module of the voluntary reporting standard
communicate with key partners about their ESG data needs

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.