The European Commission has taken measures to help lessen the regulatory burden on companies by adapting the scope of CSRD while maintaining the legislation’s core objectives.

To date, the European Commission has published two sets of changes: EU Omnibus I, and the Sustainability Taxonomy Simplification, which forms part of the broader Omnibus I package.

In brief, both these changes lessen the regulatory and administrative burden placed on companies, most notably reducing the number of organisations required to report during the initial rollout period.

Many organisations, who would have previously been required to align with and report under CSRD are no longer obliged to do so. In addition, many of these organisations will have already invested significant resources into ensuring compliance.

VSME aims to provide those organisations, who are ready to report, with a means to do so. VSME is the Voluntary Sustainability Reporting Standard for Non-Listed Micro, Small, and Medium Enterprises. Developed by the European Financial Reporting Advisory Group, VSME offers a voluntary framework for SMEs in the European Union to report on sustainability and Environmental, Social, and Governance (ESG) issues.

Why should my company report if it doesn’t have to?

Even though many SMEs are not directly obligated to report under CSRD, they are increasingly asked for ESG data by their clients, banks, investors, and their supply chain.

The VSME standard unifies and simplifies these requests, providing a single reporting framework that SMEs can use to respond efficiently. Being able clearly demonstrate performance in a common reporting language will become critical to winning work.

By empowering SMEs to measure, manage, and communicate their sustainability efforts, VSME helps them build credibility, access green financing, and future-proof their operations as ESG scrutiny increases across Europe.

VSME encourages more SMEs to begin their sustainability journey, making it easier for smaller organisations to align with EU climate and social goals, and contribute data to the broader push for a sustainable European economy.

VSME provides organisations that would otherwise choose not to report on ESG performance with an accepted reporting framework. For companies beginning their ESG journey, the VSME template’s simplicity and guided approach lower the barrier to participation in the EU’s sustainability ecosystem.

Learn More

To learn more about CSRD, Omnibus I, the Sustainability Taxonomy Simplification, and VSME download our fact sheet, that has all the information you need to understand your reporting obligations.

About SustainIQ

SustainIQ is an integrated ESG reporting platform that unifies all aspects of an organisation’s sustainability activities within a single environment. Businesses use SustainIQ to measure, monitor, and report on their social, economic, and environmental performance in real time.

Our software saves sustainability professionals from wasting time chasing teams, sites, and regions for reporting information. No more unreadable spreadsheets, awkward (and incorrect) calculations, and endless report building. With SustainIQ, simply pull, input or bulk upload data and get access to your custom-built report at touch of a button.

To learn more about SustainIQ or to arrange a demo click here.