EU Introduces Voluntary ESG Reporting Standard for SMEs
The European Commission has started a voluntary sustainability reporting standard (VSME) to help small and medium-sized enterprises.
Today’s ESG Updates
- New EU ESG Reporting Standard Targets SME Burden Reduction: Recommendation aims to ease reporting burden and improve SME access to sustainable finance.
- Brazil Soy Pact Exposes Widespread Deforestation Violations: New study finds 98% of soy moratorium-blocked farms cleared land illegally.
- Trade Talks Frenzy as August 1 Tariff Deadline Looms: Countries scramble for last-minute deals before sweeping new U.S. tariffs hit global markets.
- Second-Life EV Batteries Deployed to Stabilize Texas Grid: A California-based company is repurposing used car batteries to meet energy demand and reduce grid costs.
EU introduces voluntary ESG reporting standard for SMEs
The European Commission announced late Wednesday a voluntary sustainability reporting standard (VSME) to help small and medium-sized enterprises (SMEs) respond to ESG data requests from larger firms and financial institutions. The recommendation encourages voluntary ESG disclosures to ease access to sustainable finance and improve resilience, without imposing CSRD-style mandates. This move follows the Commission’s Omnibus I proposal, which limits mandatory reporting to firms with over 1,000 employees. The commission states that voluntary reporting is an “intermediary decision” before the formal delegated act on a voluntary standard is adopted. Until then, the recommendation acts as a safeguard against excessive value chain pressure, helping SMEs stay competitive while aligning with ESG transparency and reporting.