EU: Voluntary Reporting Standard for SMEs Launched
August 05, 2025
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
Latest Insights
- legal updatesSEC proposes to modernize performance fee rules and expand accredited investor designations
- legal updatesCFTC issues staff advisory on “mention market” event contracts
- legal updatesEU: Proposed KIDS Act Targets Online Child Safety
- guides and reportsTechnology, AI and the changing legal landscape of M&A
Latest News
- firm newsFaster deals, deeper diligence: AI is transforming the legal landscape of M&A – new Eversheds Sutherland report finds
- client newsEversheds Sutherland Advises Infranity on Closing of $300 Million Holding Company Credit Facility with Lydian Energy
- client newsEversheds Sutherland Advises Ives Ultra AI Opportunities Inc. on $200 Million Initial Public Offering
- firm newsLeading finance partner joins Eversheds Sutherland
Latest Events
- Events And Training
- virtual | October 15, 2026Immigration UK – Right to work and compliance masterclass
- virtual | October 20, 2026German employment law training
- virtual | November 03, 2026French employment law training
legal updates
October 08, 2026
SEC proposes to modernize performance fee rules and expand accredited inves...
legal updates
October 08, 2026
CFTC issues staff advisory on “mention market” event contracts
legal updates
October 07, 2026
EU: Proposed KIDS Act Targets Online Child Safety
guides and reports
October 07, 2026
Technology, AI and the changing legal landscape of M&A
firm news
October 07, 2026
Faster deals, deeper diligence: AI is transforming the legal landscape of M...
client news
October 06, 2026
Eversheds Sutherland Advises Infranity on Closing of $300 Million Holding C...
client news
October 06, 2026
Eversheds Sutherland Advises Ives Ultra AI Opportunities Inc. on $200 Milli...
firm news
October 05, 2026
Leading finance partner joins Eversheds Sutherland