The German Accounting Standards Committee (DRSC) has submitted its response to the Federal Ministry of Justice and Consumer Protection (BMJV) on the European Commission’s (EC) proposed voluntary sustainability reporting standard for small and medium-sized enterprises (SMEs), known as VSME.
The DRSC response follows a request from the BMJV earlier this month as part of a stakeholder consultation.
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The ministry’s move is linked to a consultation at EU level, where the EC has asked Member States whether the planned voluntary standard should match the existing Commission recommendation on VSME, or diverge from it.
The future standard, which companies would apply on a voluntary basis, is expected to act as a key reference point for limiting sustainability-related information requests along the value chain under the Omnibus I Directive, referred to as the Value Chain Cap.
In its letter, the DRSC states that the standard, as currently recommended by the EC, “has the potential to reduce individual information requests to SMEs”.
At the same time, it notes that complete harmonisation of information requirements is unlikely given the differing needs of various stakeholder groups.
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By GlobalDataThe DRSC’s position draws on its prior work on the VSME.
This includes translation activities carried out together with the Austrian standard setter, AFRAC, as well as initial findings from discussions with stakeholders on how well the VSME meets their requirements.
Beyond the consultation of member states, the EC is also preparing a short public consultation on the VSME. This is expected to run for one month in April or May 2026.
Earlier this month, the DRSC filed an application to join the IFRS Foundation’s Sustainability Standards Advisory Forum.
