Revised LSME Workshop for users and investors

EFRAG is currently working on the revised LSME for a more simplified LSME standard and according to the tentative decision taken by EFRAG SRB on 4 July 2024.

The ESRS LSME Exposure Draft (ED) has successfully transitioned from the public consultation phase (and field test), where feedback was gathered and analysed, to the deliberation stage, where it is now being reviewed and evaluated by the SRB and SR TEG to determine the next steps and final approval of the standard. While the direction is to streamline the standard as much as possible compatibly with the content of the CSRD, EFRAG would like to avoid any undue loss of information for users and investors. With this in mind, we would appreciate your technical input given your interest in LSME ED.

In this regard, EFRAG Secretariat invites investors and potential users of LSME sustainability statements to an online workshop to discuss whether the revised LSME still meets the needs of investors, which is an overarching objective of this standard in the provision of the CSRD.

The workshop will take place online in the first half of September 2024.

To express your interest in participating, please click here.

BACKGROUND

EFRAG has been mandated to develop a standard for SMEs which are public-interest entities. These include those whose transferable securities are admitted to trading on a regulated market in the European Union, SNCIs (small and non-complex institutions) and captive insurers and reinsurers, in what is called ESRS LSME (ESRS for Listed SMEs). The standard would be applicable from 2026 with an additional 2-year opt out. The standard will be issued as a delegated act. ESRS LSME ED has the objective of enhancing ESG data availability from smaller undertakings to investors, by increasing their access to sustainability portfolios and avoiding discrimination due to lack of sustainability information.

The EFRAG SRB approved the ESRS LSME ED on 15 December 2023 and the ED was issued on 22 January for a 4-month public consultation.