Small and Medium-sized Enterprises (SMEs) face new Corporate Social Responsibility (CSR) reporting requirements with the EU's Corporate Sustainability Reporting Directive (CSRD) and the SEC's climate disclosure proposals in the USA.
While the initial impact of CSRD will affect larger European companies, SMEs (10 employees or more) will also be required to report on their environmental and social actions starting from 2026.
Despite their size, SMEs can have a significant environmental impact, accounting for 60-70% of industrial emissions and other environmental degradation. Their contribution is vital to achieving global net-zero targets.
A helpful starting point
To get started in sustainability reporting, SMEs can turn to the United Nations' 17 Sustainable Development Goals (SDGs), in particular using the practical and actionable guidance of the SDG Compass.
The SDG Compass translates the SDGs into easy-to-implement steps tailored for small businesses, helping them make meaningful social and environmental adjustments.
With SMEs constituting 99% of Europe's economy, employing around 100 million people, and representing over half of Europe's GDP, their commitment to sustainability is crucial for a more sustainable future.
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