As an SME entrepreneur, you increasingly receive questions about the sustainability of your business operations. Large customers and supply chain partners want to know what your CO2 emissions are and how you deal with working conditions. With the arrival of the CSRD-light in February 2025, it will be a lot easier for SMEs to answer these questions properly. This simplified version of the European CSRD for SMEs offers practical tools to make your sustainability performance transparent, without getting bogged down in complex reports.
What does the CSRD mean for your SME?
The impact of the CSRD on SMEs is twofold. Only listed SMEs will be required to prepare a sustainability report starting in 2026. Unlisted SMEs are not subject to this obligation, but they may be indirectly affected by the CSRD.
This happens especially when you do business with large companies that do fall under the CSRD. This is because these companies have to report on their entire value chain, including their suppliers. They may therefore ask you to provide information on, for example, your CO2 emissions or working conditions. The CSRD protects SMEs in this respect: large companies may not request more information than what is contained in the simplified SME standard.
Three key benefits of voluntary CSRD reporting for SMEs
- Strengthen your market position By starting with sustainability reporting now, you become an attractive partner for large companies covered by the CSRD. You will distinguish yourself from competitors, increase your access to sustainable tenders and strengthen your position in international chains.
- Reduce costs By systematically reporting on sustainability, you gain a better understanding of your energy consumption, material use and business processes. This helps you save costs and identify inefficiencies. Moreover, you avoid expensive retrospective adjustments by anticipating future legislation now.
- Strengthen your organization Sustainability reporting helps you attract and retain talent, increase employee engagement and improve your access to sustainable financing. This is how you build a future-proof organization that is ready for tomorrow’s challenges.
Getting started with CSRD-light
The EU is making it easy for SMEs to get started with sustainability reporting through the new Voluntary SME (VSME) standard that will be available in February 2025. This approach has several practical advantages, with 90% fewer data points than the full CSRD and a flexible modular approach to suit your business.
The new VSME standard offers SMEs two flexible modules to choose from. The basic module is the foundation and focuses on essential elements such as general business information, your key sustainability impact, your energy consumption and carbon emissions, and basic employee data.
For entrepreneurs who want to go a step further, there is the extended module. This builds on the basic module and goes deeper into your sustainability strategy and goals. You then also report on your plans for reducing greenhouse gases, provide more extensive information about your employees and show how you deal with human rights in your business operations.
The beauty of this modular approach is that you can choose which level best suits your ambitions and abilities. For example, you can start with the basic module and later, when you are ready, advance to the extended module.
Want to know more about CSRD for SMEs?
Want to know more about how you can benefit from the CSRD as an SME? Then download the extensive white paper “CSRD for SMEs” that we developed together with Sdu. In it you will find practical tools to get started immediately with your sustainability reporting.