Business Owners: How SMEs Can Implement the EU’s Voluntary ESRS Standards - Antaris Consulting

Business Owners: How SMEs Can Implement the EU’s Voluntary ESRS Standards

Business Owners: How SMEs Can Implement the EU’s Voluntary ESRS Standards 

The European Union has taken a significant step towards enhancing corporate sustainability reporting for small and medium-sized enterprises (SMEs) with the publication of voluntary European Sustainability Reporting Standards (ESRS). These new standards aim to provide SMEs with a structured framework for disclosing environmental, social, and governance (ESG) information while reducing the complexity often associated with sustainability reporting. 

Here’s a step-by-step guide on how you can implement these standards effectively. 

1.Identify Key ESG Issues with a Materiality Assessment

You should start by determining which ESG factors are most relevant to your business. This process, known as a materiality assessment, ensures reporting efforts focus on areas with the greatest impact. 

How to Conduct a Materiality Assessment: 

  • List all possible ESG factors (e.g., energy use, waste management, social responsibility). 
  • Identify which issues matter most to stakeholders (investors, customers, employees). 
  • Assess internal impact—which areas directly affect business operations and profitability. 
  • Prioritise issues where ESG performance can drive growth, efficiency, or risk reduction. 

Focusing on a few key issues prevents unnecessary complexity and ensures ESG efforts align with business strategy. 

 

2. Use Standardised ESG Metrics for Clear Reporting

The voluntary ESRS framework provides key performance indicators (KPIs) to help SMEs measure and communicate sustainability efforts. 

Actionable Steps: 

  • Select relevant KPIs from the ESRS guidelines (e.g., carbon emissions, employee safety, etc.). 
  • Start with basic data tracking—energy bills, supplier records, and incident data. 
  • Use simple reporting tools (Excel, ESG software) to track progress consistently. 
  • If applicable, align with existing sustainability standards (e.g., GRI, CDP, or UN SDGs). 

Using standardised metrics improves comparability and makes reporting more valuable to investors and partners. 

 3.Apply Industry-Specific ESG Guidance

Different industries have unique ESG priorities. The ESRS includes sector-specific recommendations, helping SMEs focus on what matters most. 

Implementation Strategy: 

  • Review ESRS sector guidelines related to your business. 
  • Identify industry peers already engaging in ESG reporting and benchmark against them. 
  • Adjust sustainability efforts based on industry best practices and emerging trends. 

Industry-specific reporting increases credibility and helps SMEs align with supply chain expectations. 

4.Scale ESG Efforts Based on Available Resources

One of the biggest challenges SMEs face in ESG reporting is resource limitations. The voluntary ESRS is designed to be flexible, allowing businesses to scale efforts gradually. 

How to Scale ESG Reporting Efficiently: 

  • Start with one or two ESG priorities rather than a full-scale report. 
  • Use low-cost tracking methods (e.g., internal audits, sustainability checklists). 
  • Engage employees and stakeholders in data collection to distribute the workload. 
  • Gradually expand reporting scope as business capacity grows. 

By scaling efforts strategically, SMEs can integrate sustainability into business operations without excessive costs. 

5. Improve Transparency with Stakeholders

Investors, customers, and regulators increasingly value clear ESG disclosures. SMEs can build trust and enhance business opportunities by communicating sustainability efforts effectively. 

Practical Steps: 

  • Publish an annual sustainability summary (one-page report or website update). 
  • Use infographics and visuals to make ESG data accessible to non-experts. 
  • Engage stakeholders through surveys, social media updates, or Q&A sessions. 
  • Highlight sustainability achievements in sales pitches, investor meetings, and marketing materials. 

Transparent ESG communication boosts credibility, attracts partnerships, and improves access to financing. 

Why SMEs Should Act Now 

Implementing the voluntary ESRS standards is an opportunity, not a burden. By taking a step-by-step approach—focusing on material issues, using key ESG metrics, aligning with industry practices, scaling efforts, and enhancing transparency—SMEs can gain a competitive edge, reduce costs, and future-proof their business. 

Start small, take action today, and position your business for long-term sustainability success.

For any sustainability inquiries, do not hesitate to reach out and connect with us at :https://antarisconsulting.com/contact/

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