ESRS LSME or in its shorter form LSME is a specific sustainability reporting standard for listed small and medium-sized enterprises, small banks and captive insurers. The LSME standard was developed by EFRAG and is a simplified version of the ESRS developed for the CSRD. The LSME standard is in draft form and the final version will be available in 2026 at the latest, when listed SMEs and small banks and captive insurers will be covered by the CSRD.
From an GHG emission calculation perspective, the requirements of the LSME standard are similar to those of the ESRS E1 standard for emissions calculation for larger companies. SMEs covered by the CSRD will report scope 1 and 2 emissions from their own activities and scope 3 emissions from their own value chain, in the same way as other companies covered by the CSRD. In addition, scope 2 emissions should be calculated with market- and location-based method and total emissions should be reported using both methods.