Don’t overlook the value of the voluntary ESRS

The VSME standards offer real value—for SMEs and the large companies that depend on them

With so much focus on CSRD obligations for large companies, the new Voluntary ESRS for non-listed SMEs (VSME) might seem like an optional extra. But they offer real value—both for small businesses and the larger companies that rely on them.

The VSME standards help SMEs respond to growing sustainability data requests from banks, investors, and major clients. They offer a structured, proportionate approach to sustainability reporting—especially valuable for SMEs in the supply chains of companies already reporting under the CSRD.

The proposed EU Omnibus package reinforces this idea. If adopted, it will protect SMEs in the value chain by preventing companies from requesting sustainability information beyond what is disclosed under the VSME standards. This aims to reduce the so-called “trickle-down” effect of CSRD on smaller suppliers. Larger businesses may soon have to align their supplier data requests with these voluntary guidelines.

At the same time, the European Commission plans to revise the broader ESRS framework—cutting required data points, focusing on quantitative over narrative disclosures, and discontinuing the development of sector-specific standards. With a “stop-the-clock” on implementation already agreed and a full decision expected by late 2025, many companies are unsure what to prioritise.

In this moment of uncertainty, the VSME standards offer clarity. Whether you're an SME looking to build credibility or a larger company needing reliable supplier data, the voluntary ESRS remain a valuable tool.