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Many small and medium-sized enterprises (SMEs) are monitoring the development of the EU's Omnibus, which is expected to clarify who will be covered by the CSRD going forward and what will need to be reported in any given case. For a large proportion of companies, the immediate answer is that they will not be directly covered. However, this may provide false reassurance.
Even though many may not necessarily be covered, they will still experience increased demand for specific ESG data from their key stakeholders. This applies particularly to larger companies that are themselves subject to CSRD requirements. These companies must account for ESG matters across the value chain and therefore require the collection of specific, relevant and reliable data from their suppliers and partners.
We are thus potentially facing a market development where smaller companies without data or with limited or unstructured ESG reporting risk losing competitiveness – not due to legal requirements, but because they cannot deliver the data their customers demand.
VSME as basis for the ESG reporting
The VSME standard (the voluntary EU standard for small and medium-sized enterprises' ESG reporting) appears set to become a central tool for SMEs' ESG reporting. The standard offers a structured framework that enables SMEs to initiate ESG reporting at a level that is both manageable and relevant. However, the VSME standard should not be seen as a definitive solution for ESG reporting, but rather as a starting point. The way forward is to identify which ESG themes and associated KPIs are actually demanded by the company's key stakeholders and reflect the company's ESG-related risks – and work in a targeted manner to ensure high data quality in these areas.
ESG Reporting Services
Focus on value rather than formalities
We recommend that SMEs work dedicatedly with selected ESG key metrics of high relevance and quality. A strategy where ESG reporting is based on the company's most material ESG risks and opportunities strengthens both competitiveness and the company's position in the value chain. At the same time, it helps ensure that ESG does not merely become an administrative burden, but a genuine business driver.
It is crucial that ESG reporting evolves from being an academic compliance activity to becoming a practical, value-creating exercise with concrete business relevance. When reporting is integrated into the company's decision-making processes and linked to real risks and opportunities, it becomes a management tool that both creates oversight and can be translated into action and results.
The VSME standard can thus provide a solid foundation for SMEs' ESG reporting and preparation for market requirements. However, the greatest value is achieved when the standard is adapted to the company's profile, sector and stakeholder landscape – with a focus on quality and relevance in the reported data.
We can help
At Basico, we have extensive experience with ESG reporting across industries and company sizes. Our approach is always practical and value-creating – we help you identify the right focus areas and the appropriate scope, so your ESG reporting generates genuine insight and supports your business.
If you do not have ESG competencies in-house, we offer "ESG-as-a-Service", where we function as your ESG department. Here you will be assigned a dedicated, experienced consultant who follows the business closely – typically an agreed number of hours per month, depending on your needs. This ensures that tasks are completed and that you maintain oversight.
