EFRAG maps ESG platforms for SME reporting

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The European Financial Reporting Advisory Group (EFRAG), a body that supports the European Commission in setting financial and sustainability reporting standards, has launched an initiative to gather information on platforms and tools that help small and medium-sized enterprises (SMEs) in ESG reporting. This initiative is part of the evolving regulatory environment, with directives such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDD), which emphasise the importance of transparency with regard to corporate sustainability reporting.

EFRAG is working to ensure a consistent adoption of the voluntary standards for SME sustainability reporting (VSME - Voluntary Standard for SME Sustainability Reporting) across Europe. It has therefore launched a questionnaire aimed at anyone who has developed or provides digital tools for SME ESG reporting. The deadline to participate is 24 February 2025. After providing the European Commission with technical advice on the VSME standard, EFRAG is developing an ecosystem to foster its adoption in the European market. The mapping of platforms and ESG tools is a key step to support SMEs in adapting to the new European directives.

EFRAG is collecting data on a number of tools and platforms, including ESG platforms that facilitate the matching of supply and demand of sustainability data and act as information aggregators, digital tools such as greenhouse gas emissions (GHG) calculators, geolocalisation tools and databases for waste management or energy certifications (EPCs), as well as other initiatives that support SME ESG reporting, improving access to information and regulatory compliance. Initiatives included in the mapping must demonstrate in-depth knowledge of ESG reporting and ideally have already developed prototypes or mock-ups based on the VSME standard. Priority will be given to ESG platforms with more than 200 institutional and financial users, as well as initiatives that have already participated in public consultations and tests on the standard.

EFRAG's initiative is part of the broader 'VSME Ecosystem', a support framework for SMEs that includes the SME Forum, a dedicated forum for SMEs and ESG stakeholders to promote the standard VSME. Mapping of initiatives is another crucial aspect, with the collection and analysis of ESG reporting platforms for SMEs. Awareness-raising events, meetings and training sessions are also planned to improve knowledge of the VSME standard, as well as adoption surveys to monitor the level of VSME use in the market. To support SMEs, EFRAG will provide practical guides and templates to facilitate the implementation of the standard. In addition, a self-assessment of existing or developing initiatives is being carried out to check their compatibility with the VSME standard and to facilitate their coordinated deployment across Europe. The evaluation will be complemented, if necessary, by bilateral discussions to deepen the details of the different initiatives.

The results of the mapping carried out by EFRAG will be presented at the SME Forum, giving stakeholders the opportunity to provide feedback and improve the VSME adoption process. In addition, starting in March 2025, EFRAG will share the results of the self-assessment through public events, contributing to greater awareness and preparedness of SMEs for ESG reporting. This initiative is a decisive step towards facilitating corporate sustainability in the SME sector by promoting concrete tools and a harmonised approach to ESG reporting across Europe.

This article has been realised within the project "Biodiversity services EU expansion" (CUP: E43D22000480009) in the framework of the Lombardy Region's call for tenders "PR FESR 2021-2027 - LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalisation of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting and regenerating biodiversity, supporting companies in defining customised climate strategies based on the analysis of their impacts and dependencies on nature. With an established portfolio in Italy, Germany and France and prominent partnerships, 3Bee continues its expansion into international markets to create real impact through technology