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What the Heck is CSRD, and Why Should SMEs Care?

csrd esg sme Mar 04, 2025

TL;DR: What SMEs Need to Know About the CSRD

  • The Corporate Sustainability Reporting Directive (CSRD) will impact over 50,000 companies, including many SMEs indirectly via supply chain requirements.

  • SMEs are not legally required to report—yet—but larger clients will expect ESG data, making reporting crucial for future-proofing your business.

  • Opportunities include stronger investor appeal, cost savings, market differentiation, and resilience to regulation.

  • Get started by measuring Scopes 1 & 2 emissions, training your team, and building a phased sustainability strategy.

  • Top challenges include cost, data collection, and fear of greenwashing—addressed by starting simple and using verifiable metrics.

  • CSRD is more than a regulation—it’s a chance to lead with transparency, align with evolving consumer values, and contribute to a more sustainable economy.

🟢 Ready to act? Our SustainAbility Reporting Course helps SMEs simplify ESG reporting and turn sustaina

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The Ultimate Guide To CSRD (And Why ESG Reporting Matters In 2024)

The Corporate Sustainability Reporting Directive (CSRD) is a new piece of EU regulation that requires companies to audit and report on their Environmental, Social and Governmental (ESG) activities and initiatives.

CSRD applies to all businesses within the European Union, including subsidiaries of foreign companies located and doing business in Europe.

Having a thorough understanding of CSRD requirements and ESG topics generally will guarantee you a clear competitive advantage over your competitors.

The purpose of this article is to make CSRD accessible and explain, in plain language, what it means for your company in the months and years ahead.

We'll also attempt to answer some of the most common questions on this topic, including:

  • What is CSRD and why does it matter?

  • What are the direct business benefits of CSRD?

  • Who will be affected by CSRD and what timeline is involved?

  • What are the requirements of CSRD?

  • What are the implications of CSRD for UK companies...

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