Budget-Friendly CSRD Compliance: A 5-Step Plan

Introduction

Preparing for the Corporate Sustainability Reporting Directive (CSRD) doesn’t have to break the bank. Many small and growing businesses (SMEs) assume compliance means hiring consultants or buying costly software, but that’s far from the truth. You can achieve CSRD compliance without consultants using existing data and simple tools. With smart planning, existing tools, and a structured approach, even small teams can meet CSRD expectations affordably.

This guide walks you through a 5-step plan to build CSRD compliance on a budget, combining the flexibility of manual tracking with scalable practices that can grow as your business does.

Step 1: Understand What Applies to You

Start by determining whether your business falls directly under CSRD or is affected indirectly through your supply chain.

• Directly covered: Large companies (250+ employees or €50M+ turnover).
• Indirectly affected: Small and growing businesses supplying data to larger clients who must report.

Even if you’re not legally required to report yet, collecting basic data now helps build trust with clients and investors — and avoids future rush costs.

Check your CSRD requirements →

Step 2: Choose a Scalable Reporting Approach

Begin simple. A well-structured spreadsheet aligned with the VSME Basic Module is sufficient for most small and growing businesses (SMEs) in the early stages. Track key metrics like:

• Energy use (electricity, fuel)
• Workforce (headcount, gender, training)
• Waste and recycling
• Basic governance policies

Manual reporting is fine at first, but plan for automation later. Once data grows across sites or teams, tools designed for CSRD reporting can save time and reduce errors.

Compare manual vs software CSRD reporting →

Step 3: Reuse Existing Data

You likely already collect much of what CSRD needs. Look at:

• Utility bills for energy data,
• Invoices for purchased goods and materials,
• Payroll records for workforce metrics.

The key is consistency — not perfection. Align your data collection with the ESRS structure so you can easily expand reporting later.

See how to report fuel receipts and invoices →

Step 4: Build a Simple Documentation System

You don’t need specialised software to document your process. Create a shared folder (e.g., Google Drive, OneDrive) with subfolders for:

• Energy and emissions
• Waste and recycling
• Social and workforce data
• Governance and policies

Use version control (e.g., timestamps) to keep an audit trail, which the CSRD and future assurance reviews may require.

Step 5: Plan for Growth — Not Perfection

Start small, learn the process, and improve each year. Once your first CSRD or VSME report is complete:

• Identify which data collection steps took the most time.
• Explore affordable software for automation.
• Reuse your structure for next year’s report.

Small and growing businesses (SMEs) that start early, even manually, spend 50–70% less on compliance than those who wait until reporting is mandatory.

Frequently Asked Questions

How much does CSRD compliance cost for small companies?

For small, non-listed businesses, the first-year cost can be as low as €500–€1,500 if handled internally without consultants. Costs rise when hiring consultants or implementing new systems, but using templates and free VSME tools keeps expenses manageable.

Learn more about manual reporting costs →

Can I start with spreadsheets and upgrade later?

Yes. Most small and growing businesses (SMEs) begin with spreadsheets and switch to dedicated tools once they understand their data needs. The VSME Standard ensures that your initial data stays compatible when you decide to upgrade to software.

Explore VSME reporting options →

What are the biggest money-saving tips for CSRD compliance?

Focus on reuse and collaboration. Use data you already collect, train one internal coordinator, and avoid overpaying for early audits. Automating data entry later — rather than outsourcing to consultants — delivers the best long-term value.

See how SMEs automate CSRD reporting →

Key Terms

• CSRD: Corporate Sustainability Reporting Directive (EU) 2022/2464 — sets sustainability reporting rules for EU companies.
• VSME: Voluntary Sustainability Reporting Standard for non-listed SMEs, published by EFRAG in 2024.
• ESRS: European Sustainability Reporting Standards — define disclosure topics and data points.
• Assurance: External verification ensuring that reported data is accurate and reliable.
• Audit Trail: Documentation that tracks how sustainability data was collected and validated.

Conclusion

CSRD compliance doesn’t have to be expensive or intimidating. By starting early, using existing data, and applying structured but low-cost methods without consultants, small and growing businesses (SMEs) can meet reporting requirements and prepare for future growth. A little structure today can save thousands tomorrow — and show stakeholders your business takes sustainability seriously.

Before starting, understand the potential return on investment for your budget-friendly approach using our ROI calculator:

This tool helps you see how even a budget-friendly approach can deliver value and savings over time.

Get started with CSRD compliance tools →