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We here at CLD know that many Irish SME owners assume sustainability reporting is something only large corporations need to worry about. In legal terms, that is largely true, as the formal EU reporting rules apply to bigger companies. In practice, however, those large companies cannot report on their own impact without information from the businesses that supply them. As a result, questions about energy use, emissions and environmental practices are increasingly landing on the desks of small and medium-sized businesses, often with little warning.

How Sustainability Reporting Trickles Down

Large companies across the EU are required, or expect to be required, to report on their environmental and social impact. A significant part of that impact sits not within their own operations but across their supply chain. A large retailer’s carbon footprint, for example, includes the emissions generated by the businesses that produce, transport and package the goods it sells.

To measure this, large companies need data from their suppliers. That is why SMEs that have never been directly subject to any sustainability regulation are now receiving questionnaires, supplier surveys and requests for information as part of tenders and contract renewals.

What Customers Are Asking For

The questions vary, but common requests include details of your energy and fuel consumption, estimates of your carbon emissions, information about waste and recycling, and whether you have an environmental policy in place. Some customers also ask about employee matters, health and safety, diversity and how the business is governed.

For many SMEs, the first request can feel overwhelming, particularly if the information has never been gathered before. Yet much of the underlying data, such as electricity bills, fuel costs and waste collection invoices, already exists within your accounting records.

It Is Not Only Customers

Banks and lenders are also paying closer attention to sustainability. Financial institutions are expected to understand the climate-related risks in their lending, and many now ask business customers about their environmental practices when assessing applications or reviewing facilities. Some offer more favourable terms for sustainability-related investments.

Public sector buyers are increasingly including environmental criteria in tenders, and investors are asking similar questions of the businesses they back. Across the board, being able to demonstrate your approach to sustainability is becoming part of doing business.

The EU Rules Are Changing, But the Direction Is Clear

The EU’s sustainability reporting rules have been revised and simplified in recent times, and the number of companies directly required to report has been reduced. Some SME owners may take this as a sign that the pressure will ease. However, many large companies continue to set their own sustainability targets, respond to investor expectations and need supplier data to measure progress.

At EU level, a voluntary reporting standard for SMEs has also been developed to give smaller businesses a simpler, consistent way to share sustainability information with customers, lenders and investors. This is intended to help SMEs respond once, in a recognised format, rather than completing a different questionnaire for every customer.

The Cost of Not Being Ready

Businesses that cannot provide basic sustainability information risk falling behind competitors that can. Supplier questionnaires are increasingly used to shortlist and score suppliers, and an incomplete or missing response can count against you. In some cases, larger customers may choose to reduce their supplier base and prioritise those who can support their reporting needs.

The Opportunity Behind the Requirement

Sustainability reporting is not only a compliance exercise. Measuring your energy use and waste often reveals opportunities to cut costs. Lower energy consumption reduces bills, less waste means lower disposal costs and more efficient processes can improve margins. Demonstrating strong environmental credentials can also help you win new customers and stand out in tenders.

Practical Steps to Get Started

Start by measuring the basics. Gather information on your electricity, gas, fuel and water use, along with waste volumes, ideally covering the past year. This provides a baseline against which future progress can be measured.

Next, consider estimating your carbon footprint. Simple tools and support programmes are available to help SMEs calculate their emissions without needing specialist expertise. Local Enterprise Offices and other State bodies offer advice and training to help smaller businesses take these first steps.

Put a short environmental policy in place, setting out your commitments and the practical actions you are taking. Assign responsibility for sustainability to someone in the business, so requests from customers are handled consistently and on time.

Finally, keep evidence. Customers and lenders increasingly want to see how figures were calculated, so retain the invoices, meter readings and records that support your data.

Prepare Now and Stay Ahead

Sustainability reporting is reaching Irish SMEs whether or not they are directly regulated. Businesses that start gathering information now will be able to respond confidently to customers, lenders and tenders, and may uncover valuable savings along the way.

At CLD, we help businesses organise the financial data behind their sustainability reporting, identify cost savings and respond confidently to customer and lender requests.

If you would like to discuss your business, contact us on or email pj@cld.ie or visit cld.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.