What does VSME stand for?
Short answer: VSME stands for Voluntary Sustainability Reporting Standard for non-listed small and medium-sized enterprises and is a voluntary EU reporting standard for non-listed small and medium-sized enterprises[1].
The European Financial Reporting Advisory Group (EFRAG) developed the VSME standard to enable companies below the CSRD threshold (< 250 employees) to have comparable, streamlined sustainability reporting. The standard was published in December 2024 and targets companies that do not fall under the mandatory Corporate Sustainability Reporting Directive (CSRD), but still want to report transparently on their sustainability performance or respond to ESG data requests from their stakeholders[2].