Sustainability reporting doesn't have to be scary

EU sustainability rules look complex. For SMEs, they don't have to be.

bureaucracy
expensive consultants
additional costs and administrative burden

This reaction is understandable. EU sustainability regulation has expanded rapidly, and headlines are often dominated by complex requirements designed for large corporations.

But there is an important distinction that often gets lost.

Sustainability disclosure for SMEs is different by design

proportionate to the size and capacity of SMEs
practical, focusing only on relevant information
designed specifically for SMEs, not adapted from large-company rules
increasingly requested by banks, investors, and supply-chain partners

In practice, this means that while many SMEs are not legally required to report under EU law, they are already being asked for sustainability information — by lenders, customers, and business partners who need consistent, reliable data.

One standard, two levels: Basic and Comprehensive modules

To reflect the diversity of SMEs, the EU VSME standard is built around a modular approach. This ensures that companies report what is relevant for them, and nothing more.

The standard includes two modules:

The Basic module

relatively simple operations
limited environmental and social risks
mainly local or national activities
no strong pressure for detailed sustainability data from banks or large clients

core information on energy use, workforce, and basic policies
high-level, easy-to-collect indicators
the minimum dataset commonly requested by banks and business partners

Example: Anna runs a small manufacturing company with 18 employees producing metal components for local customers. The company operates from one site, has no international supply chain, and is applying for a standard bank loan. The Basic module provides all the sustainability information her bank is likely to request — without unnecessary complexity.

For many SMEs, the Basic module is fully sufficient.

The Comprehensive module

operate in higher-impact or regulated sectors
are part of international or complex value chains
supply larger companies subject to sustainability reporting
face more detailed information requests from banks, investors, or customers

more granular environmental and social data
deeper insight into risks, impacts, and management practices
stronger alignment with financing and supply-chain expectations

Example: Marco manages a 120-person food-processing company supplying products to large retail chains in several EU countries. His customers regularly send sustainability questionnaires, and his bank asks for detailed information on energy use, emissions, and labour practices. The Comprehensive module helps Marco provide consistent, credible data that meets these expectations — without reinventing the wheel each time.

The Comprehensive module is still proportionate — it simply reflects higher expectations where they exist.

No guesswork required: Decarbonizer assigns the right module for you

A common concern for SMEs is: "How do I know which module applies to my company?"

With Decarbonizer, you don't need to worry about that.

asks a small number of clear, structured questions
aligned directly with EU VSME criteria
considers your company's size, sector, risk profile, and value-chain exposure

the Basic module or
the Comprehensive module

No legal interpretation. No over-reporting. No under-reporting.

As your business grows or your situation changes, the tool adapts with you — ensuring your sustainability disclosure always stays relevant, proportionate, and usable.