EFRAG launches public consultation on Sustainability Reporting Standards for SMEs
EFRAG launches public consultation on Sustainability Reporting Standards for SMEs
EFRAG has launched a public consultation on two Exposure Drafts on sustainability standards for SMEs – for listed SMEs (ESRS LSME ED) and voluntary reporting standard for non-listed SMEs (ESRS VSME ED).
The ESRS LSME will be issued as delegated act and will be effective on 1 January 2026 with an option to opt out for an additional two years. As per the press release by EFRAG, the purpose of the ESRS LSME ED is to set reporting requirements that are proportionate and relevant to the scale and complexity of the activities and to the capacities and characteristics of LSMEs.
The ESRS VSME ED proposes a simple reporting tool to assist non-listed SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner as well as to facilitate their participation in the transition to a sustainable economy.
The Exposure Drafts are open for comments until 21 May 2024 and may be accessed here.
The ESRS LSME will be issued as delegated act and will be effective on 1 January 2026 with an option to opt out for an additional two years. As per the press release by EFRAG, the purpose of the ESRS LSME ED is to set reporting requirements that are proportionate and relevant to the scale and complexity of the activities and to the capacities and characteristics of LSMEs.
The ESRS VSME ED proposes a simple reporting tool to assist non-listed SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner as well as to facilitate their participation in the transition to a sustainable economy.
The Exposure Drafts are open for comments until 21 May 2024 and may be accessed here.