New EFRAG Guides Demystify Sustainability Reporting for SMEs — Spotlight on C2, C3 & C7

EFRAG has just released three practical new guides to help small and medium-sized enterprises (SMEs) navigate challenging parts of sustainability reporting under the Voluntary Sustainability Reporting Standard for SMEs (VSME). These materials offer clear examples, actionable insights and case studies for disclosures C2, C3 and C7 — empowering smaller businesses to tell their sustainability story with confidence. 

The suite of supporting guides complements the voluntary VSME Standard designed by EFRAG to make sustainability disclosures more approachable and proportionate for non-listed enterprises with fewer than 250 employees.

What’s Inside the New Guides?
EFRAG’s guides tackle three specific and often tricky disclosures in the Comprehensive Module:

  • C2 – Practices, Policies & Future Initiatives: This guide helps SMEs describe how they manage sustainability issues — with lists of illustrative examples across topics like climate, workforce and governance, plus mock case studies to spark ideas.
  • C3 – GHG Reduction Targets & Climate Transition: Designed to support SMEs in articulating greenhouse gas (GHG) emissions reduction objectives and transition plans, it offers step-by-step guidance, including examples tailored to companies in higher-impact sectors.
  • C7 – Severe Negative Human Rights Incidents: This guide provides concrete examples of reported human rights incidents in value chains — spanning workers, affected communities, and customers — to help SMEs prepare meaningful disclosures. 

Together, these guides aim to bridge the gap between what SMEs need to report and how to present it clearly and credibly. All materials are available interactively via the ESRS Knowledge Hub, EFRAG’s digital gateway for sustainability reporting resources.

Why This Matters for SMEs

While the Corporate Sustainability Reporting Directive (CSRD) mandates detailed ESG reporting for larger companies, many non-listed SMEs face growing pressure from banks, investors and value chain partners to disclose environmental, social and governance (ESG) information — even without formal legal obligations. The VSME Standard, and now these supporting guides, help SMEs respond to that demand without undue complexity or cost. 

These tools can also strengthen access to sustainable finance and improve dialogue with customers and business partners by providing clear, comparable, and stakeholder-ready sustainability information.

By offering practical, example-rich guides for disclosures C2, C3 and C7, EFRAG is helping to lower barriers for SMEs to engage in meaningful sustainability reporting. Whether you’re an SME preparing your first report or a stakeholder seeking more consistent ESG information from smaller companies, these new resources deliver clarity where it’s needed most.

Explore the full announcement on EFRAG’s site and access the guides today to strengthen your sustainability narrative. 

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