More and more customers, banks and partners are demanding transparent and reliable ESG information. For SMEs, structuring their sustainability reporting is becoming a key challenge.
Sustainability is no longer an option, it is an integral part of business strategy and is becoming a key factor in economic relations. Yet many SMEs are still hesitant, either because they lack clear guidelines or because they fear an excessive administrative burden. Today, there are practical solutions available to make ESG reporting more accessible.
A new standard to get to grips with: the VSME
The VSME (Voluntary Sustainability Reporting Standard for SMEs) represents a significant step forward. It structures sustainability information in a way that is proportionate to SMEs and clarifies stakeholders’ expectations. The result: greater clarity, but also the need to adopt new tools for collecting and organising ESG data.
A requirement for banks
Against the backdrop of the transition to a more sustainable economy, banks including ING have a growing need for reliable ESG information in order to better understand their clients’ strategies and provide them with tailored support for their transition and financing needs.
This information is essential for meeting regulatory requirements, particularly regarding contributions to climate targets.
Furthermore, the analysis of this data is central to ESG risk management within credit portfolios.
Finally, its use facilitates the integration of ESG criteria into financing processes, in accordance with the guidelines of the EBA (European Banking Authority).
Tools to simplify ESG reporting
Digital platforms, such as Isabel’s Kube ESG, make it easier to implement reporting. Kube offers a guided, interactive approach to producing reports aligned with the VSME. Kube enables users to structure data, understand key concepts (scope of GHG emissions, governance), generate consistent reports and share them with whomever they choose. The aim is to make these processes accessible, even without specialist expertise.
A step-by-step, practical approach
The adoption of reporting also relies on training and hands-on practice. The workshops offered by Sustenuto, a sustainability consultancy, help participants understand regulatory requirements, get started easily via the Kube ESG platform, and explore practical examples step by step (explanation of the data required, assistance with data collection, and the calculations needed to provide accurate responses, e.g. energy consumption), whilst benefiting from key advice. The integration of AI also facilitates analysis and drafting. By uploading existing documents, such as HR policies, energy bills, presentations or your annual report, the platform can automatically prepare up to 80% of the responses.
Ensuring the reliability of reported data
Ensuring the reliability of reported data is essential to guarantee the relevance of ESG reporting. This information forms the basis for strategic decisions and discussions with partners: its quality determines the company’s credibility. For SMEs, this approach remains entirely achievable: it is possible to gradually improve the reliability of data without undue complexity.
Ultimately, an audit also helps to consolidate this credibility and meet the growing expectations of stakeholders.
Sustainability reporting is thus becoming the norm for SMEs. Beyond mere compliance, it offers an opportunity to organise ESG data and strengthen strategic management within the company.
With the right tools, tailored support and a step-by-step approach, SMEs can now turn this requirement into a real driver for management, financing and value creation.
To find out exactly how to get started with ESG reporting aligned with the VSME and to discuss your questions with experts in the field, join us on 23 June at the workshop organised by Beci, ING, BDO and Sustenuto.
Article co-authored by ING, BDO and Sustenuto.