Listed SMEs will have to report under the CSRD from 2026. Non-listed SMEs will be able to report voluntarily if they wish to do so. EFRAG are currently developing simplified standards for both listed SMEs (LSME ESRS) and non-listed SMEs (VSME ESRS) to be published later this year.
A draft version of the VSME ESRS document was published in November 2023. At Antaris, we reviewed these standards and came out with these key takeaways:
- There are 3 levels of voluntary reporting available: Basic, Narrative-Policies, Actions and Targets (PAT), and Business Partners (BP) Modules.
- The Basic Module covers key datapoints from environmental, social and governance aspects such as energy use and GHG emissions, but does not require a materiality assessment.
- For the other 2 modules, a double materiality assessment must be conducted following CSRD guidelines. There’s a simplified list of material topics available with the draft standard.
- All the disclosures and metrics must be reported on only if applicable to the organisation.
- The Narrative-PAT Module focuses on strategy, material sustainability matters, and governance responsibilities. It includes all disclosures from the Basic module.
- The BP Module provides additional data points for stakeholders such as business partners, investors, and lenders. It includes disclosures on revenues from specific sectors, GHG emission reduction targets, and alignment with internationally recognised instruments, among other relevant information.
