Earlier this year, the Commission issued a recommendation on voluntary sustainability reporting for small and medium-sized companies (SMEs). The standard (VSME) enables small businesses to respond to requests for sustainability information from large companies and financial institutions subject to the Corporate Sustainability Reporting Directive (CSRD).

The CSRD thus has a ripple effect on SMEs, with corporates expected to pass the decarbonisation demands down the supply chain, likely boosting demand for renewable electricity. While the VSME was initially developed to provide a voluntary reporting standard for smaller businesses not covered by the CSRD and the Corporate Sustainability Due Diligence Directive (CSDDD), it may now be relevant to a much broader set of companies, given that the Commission’s Omnibus package drastically shrinks the number of companies within the European sustainability reporting regime.

Specifically, the pool of CSRD companies could be reduced from 50,000 to a range between 3,000 and 12,000 (lower scope suggested by the European Parliament, higher by the Council). Thus, depending on the company size threshold adopted, 38,000 to 47,000 EU/EEA companies could be using the VSME. Read a full overview of the VSM and the expected market impact here.

The VSME coverage of Environment metrics is fashioned akin to the European Sustainability Reporting Standards (ESRS) used by the in-scope CSRD companies. They include energy consumption, GHG emissions, and GHG emission targets, among other things. For Scope 2 emissions reporting, location-based reporting is embraced, with the market-based method optional.

EFRAG, the Commission’s technical advisory body for sustainability reporting, released a report this September, mapping VSME-related tools, with a focus on GHG accounting (see table below). Despite voluntary reporting of market-based Scope 2 emissions, most GHG tools enable the calculation.

Some tools are in the design stage, others in the operational phase.

Listed tools represent initiatives developed by government agencies. Additionally, two initiatives – Small Business Carbon Calculator and Advanced Business Carbon Calculator – which are not officially recognised or developed by a government agency, were included by EFRAG due to their significant market recognition and high public relevance.

All the tools allow for calculating Scope 1 emissions; Scope 2 emissions estimation is enabled in most tools (10 out of 16), with the location-based method being provided more often than the market-based method. Seven tools currently have Scope 3 calculations, with plans to roll out this option later.

Many of the tools indicate alignment with multiple frameworks, including ERSS, GHGP, SBTi, GRI and ISO. Only one tool has a sector-specific focus: the EFFC-DFI Carbon calculator with a focus on the construction sector.

We provide additional details below:

Climate Toolkit 4 Business: currently provides only an overall carbon footprint without distinguishing between scopes; a scope-specific breakdown is planned in the near future. The tool is currently under revision to ensure alignment with the GHG Protocol.

Climate Compass: the tool also calculates energy consumption in MWh.

Bilan Carbon: organisations can update their ESG data on the ADEME Reporting Platform. Submission is mandatory for companies with > 500 employees, in compliance with national legal requirements, and voluntary for those below this threshold. Around 2,000 companies submit their carbon reports annually, with 1,278 submissions recorded so far in 2025.

SUSTAINability – Abilità di essere sostenibile: although a GHG emissions calculator is not yet included, Dintec plans to integrate one based on an Excel spreadsheet. The tool will be based on the methodological framework of the Global Reporting Initiative (‘GRI’) and be designed to be cross-sectoral.

ISPRA Platform for Sustainable Finance: The first release is planned for early 2026. The calculator will be based on ISPRA’s national emissions inventory, using either default emission factors or data provided by users, and it will be available in Italian only. Scope 3 emissions are not currently envisaged due to data limitations, but are expected to be included in a second development phase by the end of 2026.

Carbon Footprint Calculator: The tool is expected to be released this year. Plans are in place to extend the tool’s functionality to Scope 3 emissions in the future. Recognition by the Polish Ministry of Development is currently pending.

Belgian GHG calculator: Only provides the estimated carbon footprint, without a breakdown of Scope 1 and 2 emissions.