When will the VSME be finalized?

When will the VSME be finalized?

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A European organization recently approved a draft for a Voluntary Sustainability Reporting Standard aimed at small businesses, particularly non-listed companies. This draft standard is currently open for public comment to gather feedback before finalization. The goal of this initiative is to provide a clear framework for these companies to communicate their sustainability efforts, even though they are not currently mandated to do so.

Building on Existing Practices

The proposed standard builds on existing practices and offers an alternative to the upcoming mandatory standards for larger companies. It serves as a simplified tool to manage information requests from business partners on sustainability practices. The idea is to make sustainability reporting more accessible for all small and medium businesses (SMEs), listed or non-listed. The draft standard is designed to reflect the size and complexity of these businesses, ensuring proportionate requirements.

Public Consultation on Draft Standards

A regulatory body is currently seeking feedback on these draft standards for sustainability reporting by SMEs. The consultation covers two sets of guidelines: one mandatory for listed SMEs and another voluntary for non-listed SMEs. This is where you, as a stakeholder, can participate in a field test to assess the feasibility and usefulness of the proposed disclosures. Your feedback can shape the final standards that will ultimately influence how SMEs communicate their sustainability practices.

Mandatory Reporting for Listed Companies

For listed SMEs, the draft standards propose mandatory reporting requirements to ensure consistent sustainability information for investors. These mandatory standards are designed to ensure that investors have the necessary information to make informed decisions about the sustainability efforts of these businesses.

Voluntary Reporting for Non-Listed Companies

On the other hand, for non-listed SMEs, a voluntary standard offers a chance to showcase their sustainability efforts without the pressure of mandatory reporting. This is a great opportunity for these companies to communicate their commitment to sustainability to their business partners and the public at large.

Finalizing the VSME

So, when will the VSME be finalized? The timeline for finalization depends on the feedback received during the public consultation period. Once all the feedback has been considered and necessary adjustments have been made, the final standard will be published. However, the exact timeline is not yet clear. Interested parties need to keep an eye on updates from the European organization overseeing this process.

In conclusion, the finalization of the VSME is a significant step towards making sustainability reporting more accessible and manageable for SMEs. Whether you are a listed or non-listed company, this standard will provide a clear framework for communicating your sustainability efforts, ensuring that your business partners, investors, and the public are well-informed about your commitment to sustainability.

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