Non-Financial Reporting Directive must guarantee simplified standards for SMEs

21 April 2021
by smeunited -- last modified 21 April 2021

The Directive must prevent any “trickle-down” effects in the supply chain

Moreover, these SME standards should be designed based on the "think small first" principle. As such, the sustainability reporting framework should take into account the specificities of SMEs and not just "transfer" those of the listed SMEs or the large reporting entities. To this extent, the European standard setter should work first on adequate standards for SMEs.

"We recognise that Non-Financial Information can be useful for the decision-making process, as strategic decisions are also based on the values of an enterprise. SMEs are more and more aware of their accountability. They work in this direction, reducing their potential impact on the environment, climate and society. Therefore, the scope of the Directive should not be enlarged for them", highlighted SMEunited President Alban Maggiar.

Concretely, the main concerns of SMEs are the predictable "trickle-down effects" of the new Directive. For this reason, they need guarantees that they will be allowed by their B2B clients in the scope of the Directive to report according to the voluntary SME standards.

Moreover, these SME standards should be designed based on the "think small first" principle. As such, the sustainability reporting framework should take into account the specificities of SMEs and not just "transfer" those of the large reporting entities. To this extent, the European standard setter should work first on adequate standards for SMEs.

Finally, SMEs and SME organisations request support, accompanying measures and adapted tools to be able to comply with this Directive and the Taxonomy. "In this regard, SMEunited and its member organisations are ready to continue working with the Commission and EFRAG on defining the standards and test them" concluded President Maggiar.

SMEunited, formerly known as UEAPME, is the association of crafts and SMEs in Europe with around 70 member organisations from over 30 European countries. SMEunited is a recognised employers' organisation and European Social Partner and acts on behalf of crafts and SMEs in the European Social Dialogue and in discussions with the EU institutions.

SMEunited