SMEs
Small, medium enterprises (SMEs)
EFRAG launched two workstreams on sustainability reporting standards for small, medium enterprises (‘SMEs’) in November 2022. The first one stems from the CSRD to develop a simplified standard for listed SMEs, small banks and captive insurers (together "LSME"). The other is a voluntary standard for SMEs (VSME) outside the scope of the CSRD.
On 22 January 2024, EFRAG launched the public consultation on its two Exposure Drafts (EDs) with the deadline for comments on 21 May 2024. During the period, EFRAG also ran two field tests with preparers and users to assess the feasibility, costs, challenges, benefits and usefulness of the individual disclosures and suggested improvements to the EDs.
Currently, the EFRAG SRB and SR TEG are redeliberating the outcomes from the consultation and field test with the draft standards expected end of December 2024 (with the basis of conclusions of VSME in February 2025).
For further information, please see below
LSME
The LSME ESRS stems from the CSRD which mandates EFRAG to develop a simplified standard for listed SMEs, small banks and captive insurers (together "LSME") and is a derogation of sector-agnostic ESRS and will be adopted as a delegated act by the European Commission. For more information, please access the project page.
VSME
The second workstream for SMEs falls outside the scope of the CSRD mandate and it is triggered by market needs for a voluntary sustainability reporting standard for non-listed SMEs and micro-entities to support them in facing the ESG requests of banks or partners in their value chain. For further information, please see the project page.
