If you run a small or medium business in Europe, you've probably heard the acronym CSRD floating around. But what does it actually mean for you — and do you really need to worry about it?
The short answer: if your business has 50+ employees, €10M+ revenue, or €10M+ in assets, you likely fall under CSRD requirements starting 2026. This article explains exactly what CSRD is, who it applies to, and what you need to do.
What is CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that requires companies to publicly disclose information about their environmental, social, and governance (ESG) performance — including their carbon footprint.
CSRD replaces the older Non-Financial Reporting Directive (NFRD), which only applied to large public companies. CSRD is significantly broader: it will eventually cover around 50,000 companies across Europe, including many SMBs.
Does CSRD Apply to Your SMB?
CSRD applies to your business if you meet at least two of these criteria:
- More than 50 employees
- Annual revenue exceeding €10 million
- Total assets exceeding €10 million
If you meet two of the three, you're classified as a “large undertaking” or “small and medium-listed company” under EU law and CSRD will apply to you.
Even if CSRD does not apply to you directly, your customers and suppliers who are subject to CSRD will ask you for your emissions data as part of their Scope 3 reporting. This means nearly all EU businesses will be affected indirectly.
CSRD Timeline — When Do SMBs Need to Comply?
- 2025 — Large EU companies (500+ employees) already reporting
- 2026 — Companies with 250+ employees, €40M revenue, or €20M assets
- 2027 — Listed SMBs on EU regulated markets
- 2028 — Non-EU companies with large EU operations
For most SMBs, the practical deadline is 2026 or 2027. That sounds far away, but collecting the required data takes 6–12 months of preparation.
What Does CSRD Require You to Report?
Under CSRD, companies must report against the European Sustainability Reporting Standards (ESRS). For SMBs, the relevant standard is ESRS VSME (Voluntary SME standard), which covers:
- Scope 1 emissions — direct emissions from your own operations (heating, company vehicles)
- Scope 2 emissions — indirect emissions from purchased electricity
- Scope 3 emissions — value chain emissions (business travel, employee commuting, waste)
- Energy consumption
- Social indicators (employees, diversity)
- Governance policies
The carbon footprint section (Scopes 1, 2, and 3) is the most technically demanding part — and the part most SMBs struggle with.
How Much Does CSRD Compliance Cost?
Traditional ESG consultants charge €20,000 to €80,000 for a full CSRD compliance project. This is out of reach for most SMBs.
The good news: the carbon footprint portion — which is often 60% of the work — can be completed with modern tools in a fraction of the time and cost. Tools like EmissionPlan let you calculate your Scope 1, 2, and 3 emissions and generate a CSRD-aligned PDF report for a fraction of the price.
What Happens If You Don't Comply?
Non-compliance with CSRD can result in:
- Financial penalties set by each EU member state (varies by country)
- Loss of contracts with larger companies that require supplier ESG data
- Difficulty accessing EU grants and green financing
- Reputational damage as ESG performance becomes public
How to Get Started
The first step is calculating your carbon footprint. You need:
- Your energy bills (gas, heating oil, electricity in kWh)
- Your company vehicle mileage (km driven per period)
- Your business travel data (flight km, train km)
- Your waste volumes (general waste kg, recycling kg)
- Your employee commuting data (average km per mode of transport)
Once you have this data, you can calculate your emissions in about 5 minutes using our free carbon footprint calculator. The result gives you the core numbers you need for CSRD reporting — your Scope 1, 2, and 3 total in tCO₂e.
Summary
- CSRD applies to EU companies with 50+ employees, €10M+ revenue, or €10M+ assets
- Most SMBs need to comply by 2026–2027
- You must report Scope 1, 2, and 3 carbon emissions
- Even if CSRD doesn't apply to you, your customers will ask for your emissions data
- Start data collection now — it takes 6–12 months to gather everything properly