The voluntary reporting standard for SMEs has the potential to harmonize sustainability reporting for SMEs, ensure better comparability of information and reduce the reporting burden on SMEs. It is very important for SMEs to have a reporting tool that enables them to fulfil the requirements of the downstream value chain in terms of sustainability reporting (so called “trickle-down-effect”). The VSME ED must therefore be designed in such a way that it is practicable and is accepted by both preparers and users.