By standardizing sustainability reporting, this project, which is a component of the European Commission's SME Relief Package, seeks to facilitate SMEs' transition to a more sustainable economy by making sustainable credit easier to acquire.

The VSME was created in response to a direct request from the European Commission and has been the subject of extensive discussions, with input from a wide range of stakeholders, including major corporations, SMEs, and the banking industry. The VSME has been greatly influenced by this criticism, and following a number of changes meant to make its adoption easier, it was approved in late 2024.

In order to satisfy a large percentage of the data demands that SMEs receive from business partners such as banks and investors, the VSME is organized into two modules: the Basic Module and the Comprehensive Module. The existing disjointed ESG reporting environment is expected to be replaced by this standardized method, which might lessen the reporting burden on SMEs and increase their access to green finance.

EFRAG SRB Chair Patrick de Cambourg highlighted the VSME's function in assisting SMEs by providing pertinent sustainability-related data, lowering administrative costs, and creating new business and funding prospects. The EFRAG SR TEG's chair, Chiara Del Prete, also emphasized the robust support from stakeholders during the development process and spoke excitement at the prospect of continuing to provide SMEs with useful tools and guidance.

In order to support the VSME's adoption, EFRAG intends to offer digital resources, more advice, and instructional materials in the future. In order to guarantee widespread market acceptability and successful standard implementation, these measures, which are scheduled to begin in 2025, will involve outreach and awareness-raising activities.