ESG reporting, data and documentation

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Even if your company is not subject to legal requirements for ESG reporting or CSRD compliance, there are still many compelling reasons to work with ESG in your business.

We have listed some of them:

Even if your company is not directly subject to legal obligations in this area, your customers might be covered by the CSRD and may request selected ESG data from you.

Banks are increasingly demanding ESG documentation from businesses. A lack of ESG focus may therefore negatively affect your ability to secure financing.

Larger companies rely on suppliers with strong ESG data. Public-sector clients also require documentation on climate impact and social responsibility. If your company supplies to the public sector, you may experience increased focus on these topics in tender processes.

ESG factors are gaining importance in company sales. The degree to which a company can demonstrate ESG robustness plays a role in the overall valuation.

Many employees care about whether their employer takes meaningful action on ESG and sustainability. This focus can significantly influence recruitment and retention.

Several companies have been fined for greenwashing, having failed to document or substantiate their sustainability claims. Robust ESG documentation can help prevent this.

There are currently no legal requirements for what an ESG report must contain or how it should be structured. This allows your company to report on the information and data that matter most to your specific operations and stakeholders.

We have extensive experience in helping small and medium-sized enterprises prepare ESG reports tailored to their individual needs and level of ambition.

ESG report based on the VSME standard

ESG report based on the VSME standard

At BDO, we help you assess when it creates value for your company to prepare an ESG report in accordance with the VSME standard. VSME is an EU standard for voluntary ESG reporting aimed at small and medium-sized enterprises, as well as larger companies not covered by the CSRD. The ESG report includes 11 core ESG indicators, including CO₂e emissions, and an overview of relevant policies and initiatives. It can be expanded with an additional 9 indicators as well as further information and descriptions. The ESG report provides a clear picture of your company’s sustainability profile and can be used in communication with customers, banks, insurance companies, and others.
Developing an ESG strategy

Developing an ESG strategy

An ESG strategy is a key tool that helps position the company strongly within the market and society it operates in. The purpose of the strategy is to identify and work with the ESG initiatives that create value for the company and its stakeholders. These initiatives can range from climate and environmental efforts to addressing economic challenges, employee conditions, or broader social issues. We can support you in developing your ESG strategy and work with you to ensure that the right priorities and trade-offs are made—so that your ESG and sustainability strategy becomes concrete, realistic, and integrated into the daily operations of your business.

Anchoring ESG and sustainability initiatives

Sustainable transformation is an ongoing process that requires continuous measurement, follow-up, action, and change.

Driving ESG reporting that ensures real progress requires clear processes and procedures. It requires management systems and governance structures.

Our experience shows that effective anchoring requires several key actions:

  • MEASUREMENTS & FOLLOW-UP
    • Drives solid development and improvements – and serves as a management tool.
  • IMPLEMENTATION & INTEGRATION
    • Training of key personnel as well as organisation and clear allocation of responsibilities. Establishment of management systems.
  • ESG ANNUAL CYCLE – EXISTING REPORTING FLOW
    • Takes into account the interests and needs of the involved stakeholders, which helps strengthen implementation.
Strengthen your business with a sustainable business model

Strengthen your business with a sustainable business model

Environmental, Social, and Governance (ESG) factors can have a significant impact on an SME’s business model by integrating sustainability and responsible management into the company’s strategy and operations.

Here is a description of how ESG can shape an SME’s business model:

  • Resource efficiency: By focusing on the sustainable use of resources, SMEs can reduce costs and waste, ultimately improving the company’s bottom line. This may include everything from energy efficiency to waste reduction.
  • Product development: ESG can inspire the development of new, environmentally friendly products or services, which can open up new markets or help differentiate the business from competitors.
  • Risk management: By accounting for environmental risks—such as climate change and resource scarcity—SMEs can better prepare for future challenges and avoid potential costs related to environmental damage.
  • Work environment and well-being: Investing in employee well-being, health, and safety can lead to higher productivity, reduced absenteeism, and better talent retention.
  • Community engagement: By engaging with the local community and supporting social initiatives, SMEs can enhance their reputation and build loyalty among both customers and employees.
  • Diversity and inclusion: By promoting a diverse workforce, SMEs can benefit from a variety of perspectives and innovation, improving both decision-making and customer service.
  • Ethical leadership: Implementing strong governance structures and ethical guidelines can help ensure legal compliance, prevent corruption, and promote transparency—all of which are crucial for long-term success.
  • Risk and crisis management: Effective governance structures can enhance an SME’s ability to identify and respond to risks, including those related to environmental and social factors.
  • Investor and stakeholder relations: Strong governance can make SMEs more attractive to investors, particularly those who prioritise ESG criteria in their investment decisions.

How can it shape the business model?

  • Strategic alignment: ESG can lead to a revision of the company’s mission, vision, and long-term goals, integrating sustainability and social responsibility into the core of the business strategy.
  • Business processes: SMEs can adapt their operational processes to reduce environmental impact and maximise social value—for example, by adopting green technologies or implementing fair labour practices.
  • Market positioning: By positioning themselves as responsible and sustainable, SMEs can attract customers who value these principles and differentiate themselves from competitors.
  • Culture and values: ESG principles can be embedded into the company’s culture, influencing employee behaviour and decision-making across the organisation.

By integrating ESG into the business model, SMEs can not only enhance their financial performance but also contribute to a sustainable future and build stronger relationships with their stakeholders.

Do you have any questions or need help?

Contact persons

Pernille Nielherdt Kjerulff, BDO

Pernille Nielherdt Kjerulff

Partner, Advisory
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Mette Toftegaard Rasmussen, BDO

Mette Toftegaard Rasmussen

Director
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