At the moment CSRD only applies to large companies, however from 2026 SMEs will have to deal with the new EU sustainability directive.
In this article we explain why it is worth moving immediately, what CSRD really means for a small business, what data is needed and how to start without complicating life.
What is CSRD and what changes for businesses
The CSRD is the new European directive that makes sustainability reporting mandatory for thousands of companies. It is no longer just about financial balance sheets, but also how a business affects the environment, people and society.
If you want to know exactly what it asks for, how it works and what the deadlines are, we have already written a complete guide entitled "What the CSRD really requires and what changes for your company" that we invite you to read to understand the next steps.
Here we want to help you understand why it makes sense to start moving even if your SME is not yet obliged, and what you can do concretely to prepare yourself in a simple and gradual way, without stress. The transition is underway, and those who organize today will be more competitive tomorrow.
Why SMEs can no longer ignore sustainability issues
Although today the CSRD is only for large companies, SMEs are not out of the picture. Why? Increasingly, it is the larger customers who demand ESG data from suppliers, or prefer certified and transparent companies along the supply chain. Not to mention that calls for tenders, funding and market opportunities are increasingly rewarding those with good sustainability reporting.
The sooner you gear up, then, the better. Not for obligation, but for competitiveness. Waiting until the last minute, on the other hand, is likely to be counterproductive.
Even if you don’t have to today, you must prepare in time
One thing that is often underestimated is that the collection of ESG data takes time. It’s not something you can put together in a weekend, nor can you download everything on one person. You need transversal involvement, a methodology and the patience to build a routine.
That’s why it is better to start before you have to. It allows you to test tools, understand where you are behind, and train who you need to, without the pressure of an imminent deadline. And, above all, you can make mistakes without consequences. Better to do it now.
What do you need to do in practice to be ready for CSRD?
The first thing to do is to understand what you are already doing. You may already be collecting data for regulatory requirements, such as safety, energy consumption or waste management, but have never put these together in a structured way. Then, identify the issues that are relevant to you.
The CSRD is based on the principle of double materiality, which requires you to report not only the impacts that you have on the environment and society, but also how these issues impact your company. It’s a priority map that helps you collect data that really matters.
- To facilitate this step, Uyolo has digitized a method that, based on your sector, helps you easily identify the most relevant ESG issues for your company. And not only that, you can also personalize the analysis by involving your internal and external stakeholders through dedicated surveys. Once the material topics have been defined, we move on to practice.
- The next step is to map who in the company has access to which data: administration, HR, production, logistics... Everyone can have a useful piece of the puzzle.
- Then create a shared file where you collect data month by month, choose 4-5 key indicators consistent with your materiality priorities and monitor those. For example, how much energy you consume, how much waste you produce, and how many hours of training you do.
- The most important thing, even more than the numbers themselves, is consistency. You need a simple and repeatable method that becomes part of your business routine. This is the approach that Uyolo supports, using tools tailored to SMEs who do not want to complicate their lives.
What ESG data to collect if you are an SME
It depends on the sector and the specific characteristics of the company, based on the principles of dual materiality, but there are some recurring areas that an SME can already start to monitor:
- Environment: electricity consumption, use of renewable energy, waste produced, water use
- Social: number of employees by gender, type of contract, training hours, welfare initiatives
- Governance: decision-making structure, composition of the Board, existence of anti-corruption policy or code of ethics.
A Small-Medium Enterprise must identify what is relevant to its business. An agricultural holding will follow different issues than a consultancy firm. The important thing is to start from data that you already have or can get easily.
Tools and solutions to simplify everything
At first you can use a simple Excel sheet, but as soon as the amount of data grows or more people need to access it is better to switch to tools designed for ESG reporting. There are several, and they are designed to keep track of data over time, automate calculations (e.g. CO2 emissions), generate reports consistent with the ESRS standards and facilitate collaboration between departments.
A tool such as Uyolo, for example, is designed specifically for SMEs that want to start with simplicity. It guides you step by step, offers ready-made models, calculates indicators and centralizes everything in a clear dashboard.
Frequently asked questions
Is it mandatory to have dedicated software to collect ESG data?
No and in theory you can also use tools like Excel sheets or shared documents. But in practice, when data starts to grow and needs to be updated, verified, aggregated and made ESRS-compliant, dedicated software helps you avoid errors, save time and build a robust system that stands the test of reporting. For many SMEs, using an intuitive platform is the easiest and best way to get started.
Does the Corporate Sustainability Reporting Directive only apply to environmental data?
Absolutely not. The CSRD includes all ESG, therefore environmental, social and governance aspects. In addition to emissions or energy consumption, it also asks you to report on staff composition, inclusion policies, pay equity, decision-making structures, ethical risks and internal control practices. It is a broad and integrated vision of corporate sustainability, which goes far beyond the environment.
The CSRD for SMEs is a real opportunity, not an obstacle
The CSRD for SMEs marks a turning point. It is not just a new acronym to learn, but European legislation that is already changing the way companies communicate their impacts on the world.
With the final approval of the text and the progressive transposition by the Member States, the regulatory package that includes the Corporate Sustainability Reporting Directive, the Non-Financial Reporting Directive (NFRD) and the Financial Reporting Directive reshape the landscape of sustainability reporting.
The new regulatory framework: why prepare now
The new European regulatory framework is clear: transparency and accountability are no longer optional. SMEs, including listed SMEs, are also called upon to take part in the transformation.
What is the target? Translate the proposals of the European Green Deal into a measurable process, integrated in the budget, and verifiable, thanks to the European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG).
The expected result is a more sustainable economy, attracting millions of euros in investment, stimulating development and strengthening competitiveness.
Accountability as a lever for growth
Today the ESG report is no longer an ancillary document. It is an integral part of the management report, linked to the balance sheet and based on materiality and consistency.
For this, even those who are not yet subject to the obligations of the Sustainability Reporting Directive CSRD, should start to orient themselves: collect the ESG data, train the team, know their goals and prepare an internal evaluation exercise.
From theory to practice: SME-tailored solutions
We know that for many small businesses the word "reporting" sounds complex. But today there are intuitive tools, which allow a real simplification of the required activities, even without having an internal team of experts in European regulations.
Success is not only in compiling a correct report, but in transforming social responsibility into a competitive and strategic advantage, strengthening the company’s position in the long term.
Discover technology for sustainability
Book a demo now with Uyolo!
With Uyolo you can approach ESG reporting in a simple, intelligent and personalized way. The platform guides you step by step in creating your ESG report, supports data collection, simplifies ESG reporting and helps you stay compliant with European regulations.
A solution designed for the daily activities of SMEs, flexible, scalable and always up to date with the guidelines of the European Financial Reporting Advisory Group.
Don’t wait for the obligation to knock on the door. Start today to turn regulatory adaptation into a concrete success concept.
