LSME stands for Listed Small and Medium Enterprises. It is composed of SMEs, small banks, and captive insurers that are required to report under CSRD.
LSMEs represent the final wave of companies brought into CSRD scope, originally scheduled to begin reporting from financial year 2026. These entities can use the LSME-specific ESRS standards, which are simplified versions of the full ESRS, designed to be proportionate to the resources and capabilities of smaller organizations. LSMEs also have the option to opt out of reporting for up to two additional years, providing a transitional period to build internal capacity. The Omnibus Proposal may further affect LSME reporting timelines and thresholds.
Learn more about CSRD requirements for LSMEs and explore our guide on the European Sustainability Reporting Standards to understand which simplified standards apply. Compare top CSRD software tools for SME-friendly reporting solutions.
See how Coolset helps companies with CSRD reporting for SMEs and LSMEs →
