Large companies are asking more from their suppliers on ESG transparency. Here’s how SMEs can respond effectively — and efficiently — to growing sustainability reporting demands.
The new supply-chain reality
With the Corporate Sustainability Reporting Directive (CSRD) taking effect, sustainability requirements are cascading through supply chains. Even if small businesses are not directly regulated, many are being asked to provide ESG information to their larger clients.
Start simple: know what’s needed
The first step is understanding what your customers actually require — often a few key indicators on energy use, waste, or workforce practices. SMEs can use simple tools, such as the ESG Risk Assessment App, to gather baseline data and respond consistently to supplier questionnaires.
Build capacity through training
VET providers and business networks can support SMEs by delivering practical training on ESG data collection, reporting methods, and stakeholder communication. The ESG Knowledge Framework can guide training design to ensure it meets real market needs.
Communicating your progress
Transparency builds trust. SMEs don’t need glossy sustainability reports — a concise summary on their website or supplier documentation can demonstrate commitment and progress.
Turning compliance into value
Meeting ESG expectations can open doors to new partnerships and contracts. By positioning sustainability as part of their brand, SMEs can differentiate themselves in competitive supply chains.
EU funding disclaimer:
This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of the ESG for Enterprise project and do not necessarily reflect the views of the European Union.