EFRAG published for public consultation exposure drafts of the European Sustainability Reporting Standards (ESRS) for listed SMEs, small and non-complex credit institutions and captive insurance and reinsurance undertakings (together, LSMEs) and a voluntary reporting standard for non-listed SMEs.  The consultation runs until 21 May 2024.

The purpose of the ESRS for LSMEs is to set reporting requirements that are proportionate and relevant to the scale and complexity of their activities and to the capacities and characteristics of LSMEs.  LSMEs are due to begin reporting under the Corporate Sustainability Reporting Directive (CSRD) for financial years commencing on or after 1 January 2026 (reporting 2027), with an additional two year opt-out.  The European Commission is due to adopt the ESRS for LSMEs by 30 June 2024.

The voluntary reporting standard is designed to be a simple reporting tool to assist non-listed SMEs, which are not subject to reporting obligations under the CSRD, in responding to requests for sustainability information for example, where a non-listed SME forms part of the value chain of an in-scope entity.