EFRAG Maps ESG Reporting Platforms and Initiatives to Facilitate SMEs

The European Financial Reporting Advisory Group ( EFRAG), which provides technical advice to the European Commission on financial and sustainability reporting standards, is collecting information on platforms and tools that support SMEs in sustainability reporting, an increasingly relevant aspect with the evolution of ESG regulations, such as the CSRD and CSDD.

The aim is to ensure that voluntary standards for SMEs (VSME – Voluntary Standard for SME sustainability reporting) are adopted consistently across Europe. Therefore, if you have created or provide a platform or tool that supports ESG reporting for SMEs, you can contribute to the initiative by completing the questionnaire by February 24th, 2025.

After having provided its technical opinion to the European Commission on the standard for sustainability reporting for SMEs (the VSME, precisely), EFRAG is in fact developing an ecosystem of the same name with the aim of promoting the adoption of the standard in the EU market.

Within this ecosystem, the organization is mapping initiatives related to SME reporting, including digital platforms dedicated to SME sustainability (e.g. ESG platforms that facilitate the matching of ESG data demand and supply and act as information aggregators for companies and users), digital tools (GHG emission calculators, geolocation tools) and other relevant initiatives supporting SME sustainability reporting (e.g. access to waste register databases or Energy Performance Certificates – EPCs).

“The EFRAG Secretariat will conduct a self-assessment to analyse current or future initiatives that have already integrated or intend to integrate the VSME standard. The aim is to assess the coherence of these platforms with the VSME, promoting their adoption and ensuring a coordinated implementation in Europe” reads a document published at the beginning of February by EFRAG.

For that, the body proposes the compilation of a self-assessment grid to compare and analyse the different initiatives. In addition, “where necessary”, explained EFRAG, “in-depth research will be conducted, supported by bilateral discussions , to obtain a more detailed understanding of each initiative.”

The results will then be presented at the SME Forum, where stakeholders can provide feedback for a comprehensive evaluation.

Which initiatives and platforms are included in the EFRAG mapping?

Initiatives included in the EFRAG mapping must operate in the field of sustainability reporting and have in-depth and relevant knowledge in this area. Ideally, they should have already developed a mock-up or prototype based on the VSME or similar initiatives.

Alternatively, priority will also be given to online ESG platforms and initiatives with a national or cross-border dimension, involving more than 200 users (large companies and financial/banking institutions) and more than 500 preparers.

ESG platforms and other initiatives that have already contributed to the development of the standard through public consultations and field tests are already part of the Forum and are therefore included in the mapping.

What is the EFRAG VSME Ecosystem?

To maximize the benefits and foster the adoption of the VSME standard for SME sustainability reporting, EFRAG plans to launch complementary initiatives within the so-called “VSME Ecosystem,” which is divided into several activities, some of which have already been launched, namely: the creation of a dedicated SME Forum, the mapping of SME reporting initiatives, awareness-raising and training events, surveys on the adoption of the VSME and support guides to the standard.

SME Forum

EFRAG has established a SME Forum, composed of all relevant stakeholders (users, preparers, platforms, rating agencies, national standardisation bodies), with the aim of promoting and ensuring the acceptance of VSME in the market.

The Forum will support initiatives and tools based on the VSME standard, including digital tools, educational materials and translations. It may also collaborate with the EFRAG VSME community.

Mapping reporting initiatives for SMEs

The aim of the online self-assessment questionnaire launched is to create a mapping of digital platforms and tools to support sustainability reporting for SMEs.

In this first phase (until March 2025) the institution is carrying out a desk research and selection of existing platforms also through the published self-assessment grids. In a second phase (April-May 2025) it will share the results of the self-assessment through dedicated events.

Awareness events and training sessions

EFRAG plans to organize quarterly events, including in different countries, to raise awareness among SMEs about the VSME standard and other aspects of reporting, including providing guidelines and educational materials. Participants of the SME Forum will be invited to share information on VSME-related events.

Surveys on VSME Standard Adoption

To monitor the level of use and acceptance of the VSME standard , surveys will be conducted with the support of national authorities, standardisation bodies and the SME Forum. The first survey is planned for June 2025, after the publication of the official recommendation of the European Commission.

EFRAG VSME Standard Support Guides

EFRAG will provide a set of practical guides to facilitate the implementation of the VSME, including VSME report templates and mock-ups, XBRL translation of the VSME template (for integration into digital platforms), examples of sustainability actions/policies, which can be used as drop-down menus in future online templates, examples of climate change strategies and transition plans for SMEs , examples of impacts on workers and communities involved in the value chain , and guidance on pollutant emissions (VSME Pollution Guidance).

The preparation of these guides will follow a simplified approach , suitable for SMEs. The body will gather input from the community and the Forum , involving a wide range of stakeholders. After approval by the EFRAG governance bodies (SR TEG and SRB), the documents will be open for public consultation.

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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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