Sustainability has long been a hot topic for large companies, but now, small and medium-sized businesses are feeling the pressure too. Not necessarily because they are directly required to report – but because their customers, banks, and public sector buyers are.
The EU’s Corporate Sustainability Reporting Directive (CSRD) marks a shift in how companies across Europe must document their work on climate, the environment, and social issues. For large companies, the requirements apply directly. For SMEs, the pressure comes indirectly.
The consequences are still very real: reduced competitiveness, lost contracts, and harder access to capital if they can’t show how they are working on emissions and sustainability.
Sustainability reporting is about showing how a business impacts – and is impacted by – climate, environmental, and social factors. This can include everything from greenhouse gas emissions and energy use to waste and equality. The goal is to provide better insights into risks, areas for improvement, and new opportunities.
While the CSRD mainly applies to the largest companies, the requirements are filtering down through the value chain. Big companies need data from their suppliers to meet their own obligations – which means smaller businesses are increasingly being asked to deliver on sustainability too.
Read more about the EU’s Omnibus regulation and what it means for Norwegian companies.
Bigger companies are now covered by the CSRD and will increasingly ask their suppliers and subcontractors for climate data. More SMEs will therefore need to report in order to keep existing customers or win new contracts.
Banks are now assessing sustainability risks when issuing loans. Companies with clear climate goals and good reporting will get better terms, while those without may be seen as riskier.
ESG data is becoming increasingly important for securing investments, attracting capital, and maintaining a strong position within larger corporate groups. Being able to document your sustainability efforts can make all the difference in demonstrating value and reducing risk.
The authorities have introduced a requirement that at least 30% of the evaluation weight in public tenders must be based on sustainability. For SMEs wanting to win public contracts, good reporting can be the deciding factor between winning – or losing – a bid.
In February 2025, the EU proposed significant simplifications to climate and sustainability reporting requirements, often referred to as the “Omnibus” proposal. The aim is to ease the burden on smaller companies and give larger ones more time to prepare.
While this could mean less bureaucracy for some, it’s still crucial to have a solid grasp of your emissions data. Investors, banks, insurers, and parent companies will still ask for documentation – even if you’re not directly required to report.
For most SMEs, creating lengthy reports with hundreds of indicators simply isn’t realistic. That’s why the EU has developed a voluntary standard for small and medium-sized businesses – VSME (Voluntary Standard for SMEs) – covering around 50 key sustainability topics.
The standard addresses the most important requirements you’re likely to face and offers a practical starting point for your sustainability work. It’s based on the principle of double materiality – meaning both:
How your business impacts the climate, environment and people
How climate change and social developments affect your business operations and risk
VSME provides a structured approach and helps reduce the risk of greenwashing or reporting errors. It also makes it easier to speak the same language as your customers, financial partners and public authorities – and prepares you for when the requirements become stricter.
Even though some of the overall requirements have been eased, the need for solid emissions data and proper documentation remains. With a robust yet easy-to-use reporting tool, you can save both time and money – while meeting the expectations of your stakeholders.
That’s where Ducky can help. Integrated with leading ERP providers like Tripletex, Business NXT and Visma Net, our tool is simple, automatic, and provides a strong foundation for meeting the demands of investors, customers, tenders, CSRD and the VSME standard.
Start small – and don’t wait too long. Find a tool that gives you clear numbers, and build from there. That way, the transition will feel much easier when the requirements tighten. Good luck!
Get in touch with us here, or reach out directly to pal@ducky.eco.
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