What Does CSRD Reporting Cost for SMEs? (2025 Breakdown)

Introduction

As CSRD reporting becomes reality for small and growing businesses (SMEs) across Europe, one of the most common questions is: how much will this actually cost? The good news is that the Corporate Sustainability Reporting Directive (CSRD) and its simplified companion, the Voluntary Standard for SMEs (VSME), were designed with proportionality in mind — meaning smaller firms can comply affordably and gradually.

This guide breaks down expected CSRD costs for SMEs in 2025 by approach — manual, software-based, or consultancy-supported — and helps you choose what fits your size, resources, and data maturity.

1. Understanding the Cost Drivers

The cost of CSRD reporting depends on five main factors:

1. Company size – staff numbers, sites, and turnover determine both data complexity and disclosure scope.
2. Data readiness – whether sustainability data (energy, workforce, waste) is already tracked in some form.
3. Chosen framework – whether the company applies the VSME Basic Module (minimal) or Comprehensive Module (extended).
4. Level of automation – manual spreadsheets vs. purpose-built software tools.
5. Use of external support – consultants, accountants, or auditors.

The CSRD Directive (2022/2464/EU) calls for a robust but affordable reporting framework, while EFRAG’s 2024 VSME Standard confirms that smaller firms may start with just the Basic Module focusing on essential disclosures like GHG emissions, workforce data, and governance practices.

2. 2025 Cost Breakdown by Approach

Tip: Many SMEs start manually in Year 1, then switch to software once they understand their data flow and disclosure needs. Consultancy help is most useful for the first materiality assessment and report validation.

3. Example Cost Scenarios

The examples below show how ongoing effort varies mainly by method, not company size. Software automation drastically reduces monthly time requirements even in larger firms.

a) 20-Employee Consultancy Firm

• Method: Manual tracking + VSME Basic Module
• First-year cost: €0 direct spend, ~120 staff hours
• Ongoing: 10–15 hours/month (~€300–€450/month in staff time)
• Outcome: Fully compliant, low-cost option for small firms using internal admin or finance staff

b) 80-Employee Manufacturer

• Method: Sustainability software subscription
• First-year cost: ~€2,000 setup + €1,500 annual licence
• Ongoing: 4–6 hours/month (~€120–€180/month in staff time)
• Outcome: Automated data collection with dashboards; efficient once initial data links are set

c) 200-Employee Food Producer

• Method: Hybrid — software plus consultant for materiality and assurance
• First-year cost: ~€10,000 total (consulting €6k + tool €4k)
• Ongoing: 6–8 hours/month (~€180–€240/month in staff time)
• Outcome: Robust data for audits and investor communication

4. Hidden Costs to Consider

While the reporting process itself is manageable, SMEs should also budget for:

• Staff time: internal coordination, especially between HR, finance, and operations
• Data improvements: installing meters, upgrading spreadsheets, or linking systems
• Training: understanding ESRS/VSME terms and data definitions
• Future assurance: limited assurance may become standard post-2028

These investments often pay back in easier financing and stronger supplier relationships — two of the VSME’s main goals.

5. How to Reduce Your Reporting Costs

1. Start with the VSME Basic Module. It covers the essentials: energy, workforce, governance — no need for full ESRS scope.
2. Leverage existing data. Utility bills, payroll data, and accounting systems already hold most required metrics.
3. Automate gradually. Choose low-cost tools that integrate with your systems.
4. Share the load. Cross-department collaboration reduces duplication.
5. Avoid over-consulting. External help is useful for setup, not ongoing reporting.

Frequently Asked Questions

What’s the cheapest way for an SME to meet CSRD requirements?

The most affordable route is to use the VSME Basic Module and report manually in spreadsheets. This fits businesses with under 50 employees and limited data needs. Over time, adding a software tool can reduce labour hours by 60–70%.

How much does CSRD software cost for small companies?

SME-focused CSRD platforms typically cost between €99 and €299 per month in 2025. They automate data collection from invoices, HR systems, and utilities — a worthwhile trade-off if your team spends 10+ hours monthly on reporting.

When should an SME hire a consultant for CSRD?

Hire a consultant if you’re unsure about the double materiality assessment or face investor/supply chain audits. Initial packages start around €5,000 for first-year setup, decreasing once systems are in place.

Will CSRD compliance costs decrease over time?

Yes. As tools mature and reporting becomes routine, SMEs can expect a 30–50% reduction in recurring costs after the first two cycles. The VSME standard also allows reuse of prior-year data and simplified updates.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464)
• VSME – Voluntary Sustainability Reporting Standard for SMEs (EFRAG 2024)
• ESRS – European Sustainability Reporting Standards
• Basic Module – Minimum VSME disclosures (energy, workforce, governance)
• Comprehensive Module – Extended disclosures for financing and client use
• Double Materiality – Assessing both the company’s impact and risks from sustainability issues

Conclusion / Next Steps

For most SMEs, CSRD compliance in 2025 will not break the bank. By starting small with the VSME Basic Module, using existing data, and automating over time, companies can meet requirements for under €3,000 per year. The key is to treat CSRD not as an administrative burden, but as an investment in credibility, financing access, and long-term resilience.

To understand the true cost and return on investment for your specific situation, use our ROI calculator:

This tool helps you estimate costs and potential savings based on your company size and chosen reporting approach.