European Commission Recommendation on reporting standards for SMEs published
The European Commission has published a recommendation on a voluntary standard for sustainability reporting for small and medium-sized enterprises.
On August 5, 2025, Commission Recommendation (EU) 2025/1710 of July 30, 2025 , on a voluntary standard for sustainability reporting for small and medium-sized enterprises, was published in the OJEU. Among its objectives is to provide information to SMEs to meet the data needs of large companies, banks, and investors requesting sustainability information.
This voluntary standard consists of two modules: a basic module for micro-enterprises and a comprehensive module that establishes additional data points to those indicated in the basic module, including information that is often requested by banks, investors, and corporate customers of the company.
The recommendation, which covers the same sustainability issues as the European Sustainability Reporting Standards (ESRS) in a simplified form, is an interim solution to address market demand until a voluntary standard is adopted through a delegated act under the omnibus simplification proposal, the timetable for which will depend on the pace and conclusion of negotiations between the co-legislators.