LSME Standard
ESRS for Listed SMEs (Small and Medium Entreprises)
The LSME Standard (ESRS for Listed SMEs) is the mandatory sustainability reporting framework tailored for smaller listed companies. It forms part of the CSRD for SMEs and applies from January 1, 2026, with the first reports due in 2027. By introducing proportionate requirements, the LSME ensures that SME sustainability reporting is achievable, while maintaining alignment with the broader ESRS for SMEs framework.
The Exposure Draft document is structured into six sections, covering the essential areas of sustainability disclosure:
- General requirements
- General disclosures
- Policies, actions and targets
- Environment
- Social
- Business conduct
To further reduce complexity, the LSME standard introduces several simplifications designed to ease the reporting burden for SMEs:
- Reduced disclosure requirements – only the most relevant sustainability matters are mandatory.
- Simplified reporting templates – standardized formats make it easier for SMEs to collect and present information.
- Extended compliance deadlines – listed SMEs have until 2026 to begin reporting, with first disclosures due in 2027.
- Materiality assessment flexibility – companies may omit disclosures that are not material to their business operations.
The scope of ESRS for SMEs (LSME) covers listed small and medium-sized enterprises, as well as certain small and non-complex financial institutions, captive insurance and reinsurance companies, and other public-interest entities.
By adopting the LSME standard, listed SMEs can comply with the CSRD for SMEs in a proportionate and structured way. This not only ensures compliance, but also strengthens transparency, builds investor confidence, and enhances resilience in an increasingly sustainability-driven market.
