The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that requires companies to disclose detailed information on their environmental, social, and governance (ESG) practices. Introduced in 2023, the CSRD aims to bring transparency and accountability to corporate sustainability across Europe.
While initially focused on large enterprises and listed SMEs, many smaller businesses began feeling the ripple effects through their customers, banks, and supply chains. That’s why the EU Omnibus Regulation, adopted in February 2025, brought welcome adjustments—offering SMEs more time, more flexibility, and more tools.
What’s Changing: The EU Omnibus Regulation in Brief
The Omnibus Regulation fine-tunes the CSRD rollout with SME-friendly updates:
- Extended Deadlines
Listed SMEs now have until 2028 to comply with CSRD requirements, providing room to prepare and scale up gradually. - Voluntary ESG Standard for Non-Listed SMEs (VSME)
A simplified ESG reporting framework allows non-listed SMEs to align with market expectations—without the full compliance burden of CSRD. - Group Exemptions
Parent companies can report on behalf of subsidiaries, reducing duplication and administrative complexity.
These measures shift ESG reporting from a compliance burden to a voluntary, strategic opportunity—especially relevant for SMEs that want to stay competitive in an increasingly sustainability-driven economy.
Belgium’s Targeted Response: Kube ESG and Legal Protections
Belgium is translating EU regulations into concrete support for local businesses:
- Kube ESG
Set to launch in late 2025, Kube ESG is a centralized digital platform created by Isabel Group with input from the financial sector. SMEs will be able to securely collect and share ESG data with banks and stakeholders—without needing expensive consultants or complex tools. The platform aligns with the VSME standard and enables plug-and-play reporting. - SME Safeguards in Law
New Belgian rules limit what larger companies can demand from SME suppliers. If you’re an SME, you’re only expected to provide information aligned with the simplified VSME framework—helping you avoid overwhelming data requests.
Together, these initiatives help SMEs take control of their ESG story—on their terms.
Why voluntary ESG reporting makes sense for SMEs
Even with compliance delays, ESG expectations aren’t fading—they’re evolving. According to Deutsche Bank, 62% of Belgian investors plan to increase sustainable investments. Banks and large buyers are embedding ESG metrics into credit scoring and procurement.
That means SMEs who voluntarily report—even if not legally required—can unlock real business benefits:
- Lower cost of capital
- Stronger relationships with B2B customers
- Competitive differentiation in tenders or supply chains
- Futureproofing against incoming regulation
Tips & tricks for SMEs
- Start small, start now
Track only the ESG metrics that matter to your business: energy use, diversity, transport, or water use. Use spreadsheets at first—what matters is getting a baseline. - Use the right tools
Free and low-cost tools are emerging. Kube ESG will offer plug-and-play reports. Meanwhile, platforms like ResultX can automate reporting using your existing documents and data. - Involve your team
Ask your employees for input—ESG is a shared journey. Internal engagement builds momentum and helps you spot opportunities (e.g. saving costs by reducing waste). - Communicate it
Publish your ESG data on your website or in tenders. Show banks and customers you take sustainability seriously—without overengineering it.
A booming ecosystem of ESG startups
Europe has seen a surge in tech startups focussing on sustainability reporting.
According to PitchBook, 348 companies across Europe are actively working on sustainability reporting—80 of which are building dedicated software tools. Collectively, these ESG software startups have already raised over €250 million in venture capital. This level of investment signals strong market confidence in ESG reporting as a long-term growth trend, not just a passing regulatory requirement. Two standout Belgian examples include:
- ResultX (Hasselt) – An AI-powered platform that hyper-automates ESG reporting for SMEs. It connects to your systems and suppliers, reads your documents, and generates audit-ready reports in minutes. You don’t need to be a sustainability expert—it guides you through the gaps and metrics most relevant to your size and sector.
- Karomia (Ghent) – A fast-growing startup building CSRD-compliant reporting powered by AI, helping mid-sized firms produce near-final reports in hours rather than weeks.
This vibrant ecosystem is not just for the Fortune 500—these tools are built with SMEs in mind. And increasingly, investors and banks expect these digital processes to be in place.
Final thought: from obligation to opportunity
For SME founders and scale-up leaders, the ESG landscape is shifting fast. Today, you don’t have to report—but you get to. That mindset shift can be transformative.
You can use this extra time and these new tools to build ESG into your growth story—boosting trust, winning clients, and standing out in a more transparent marketplace.
You don’t need a full-time ESG team. You need a strategy—and the right tools.
Now is the time to act—not because you must, but because you can.
