With the publication of its own Sustainability Report 2025, EFRAG – the European body advising the European Commission on reporting standards – confirms that sustainability reporting has moved beyond the stage of concept and regulation.
By applying its own principles in a digital (XBRL) environment, EFRAG positions the VSME (Voluntary Sustainability Reporting Standard for SMEs) and ESRS (European Sustainability Reporting Standards) as operational standards for the market. Sustainability information is thus evolving from a compliance exercise into a structural component of financing, risk assessment and value chain interactions.
The report ‘EFRAG Sustainability Report (VSME based) 2025’ is available via the XBRL viewer.
EFRAG is also developing a central Knowledge Hub with templates, technical support and implementation guidance.
VSME as a practical reference framework
Within this context, the VSME plays a key role. The standard was developed for companies outside the scope of the Corporate Sustainability Reporting Directive (CSRD), but still facing requests for ESG information.
The framework aligns with European standards while focusing on a limited set of relevant data points, avoiding the full complexity of ESRS. It also allows for gradual scaling if reporting requirements evolve in the future.
In practice, VSME provides a reference point in an environment where ESG data is increasingly requested. It implicitly defines what can reasonably be expected from companies within value chains and commercial relationships.
Post-Omnibus: from obligation to expectation
Recent adjustments under the Omnibus I package have reduced the number of companies subject to formal reporting obligations. At the same time, demand for sustainability information remains, particularly in financing, value chains and risk assessment.
The underlying logic is shifting. The key issue is no longer who must report, but who is able to provide reliable, comparable and proportionate information.
In this context, VSME is emerging as a common reference. Not because it is mandatory, but because it helps structure expectations, balance data requests with proportionality, and strengthen companies’ positioning vis-à-vis financiers and partners.
Relevance for brokers
For brokers, this evolution is relevant at two levels.
First, as companies, brokers themselves may be subject to ESG information requests. VSME can provide a structured and proportionate framework to respond to such requests.
Second, and more importantly, within their core business, ESG information is increasingly integrated into risk assessment, underwriting and acceptance processes. Clients are being asked to provide ESG-related information, often without a clear or consistent framework.
In this context, VSME can act as a common language between clients, brokers and the market. It helps structure information requests, focus on relevant risk indicators and link sustainability aspects to traditional risk analysis.
Operational reality
The main challenges observed today are operational.
In many companies, ESG information is not centrally organised but scattered across functions such as finance, HR and operations, and is not systematically managed.
This results in a lack of consistency and reproducibility. Similar requests are received from different stakeholders, but responses are provided in different formats, leading to inefficiencies and uncertainty regarding data quality.
In this context, VSME is used as a pragmatic structuring tool. It helps organise existing information, prioritise relevant data and standardise responses. EFRAG’s ongoing work on templates, digital formats and guidance directly supports this transition towards more usable and consistent information.
Conclusion
The publication of EFRAG’s report confirms a broader trend: sustainability information is becoming a structural component of economic interactions.
Within this evolving landscape, VSME is positioning itself as a practical reference framework for companies outside formal reporting obligations, enabling them to structure information and remain aligned with market expectations.
