BETTER FINANCE has submitted its response to the European Financial Reporting Advisory Group's (EFRAG) public consultation on the Voluntary Standard for non-listed SMEs (VSME ED). This standard aims to provide non-listed micro, small, and medium-sized enterprises (SMEs) with a simplified framework for sustainability reporting, which is particularly crucial given their growing need to meet data requests from business partners, including lenders and larger companies.
BETTER FINANCE supports the overall objective of the VSME ED, recognizing its potential to reduce the reporting burden on SMEs and facilitate their participation in sustainable finance initiatives. However, BETTER FINANCE suggests several enhancements to the draft. Notably, it recommends integrating Disclosure B2—focused on practices for transitioning to a sustainable economy—more comprehensively within the Basic Module, emphasizing the significant role of SMEs in Europe’s sustainability transition.
⬇️Check BETTER FINANCE's full response below ⬇️