In-House CSRD Reporting vs Hiring a Consultant: Costs and Benefits

For many small and growing businesses (SMEs) in Europe, the question isn’t whether to prepare for the Corporate Sustainability Reporting Directive (CSRD) — it’s how to do it. Should you manage the process internally, or bring in an external consultant? This guide breaks down the real costs, benefits and trade-offs of both options — and highlights how digital tools, such as CSRD Pro, can make compliance more efficient.

1. Understanding the CSRD and Small Business Options

The Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464) extends sustainability reporting to all large undertakings and, from 2026, to listed SMEs. Non-listed SMEs can voluntarily use the VSME Standard (Voluntary Sustainability Reporting Standard for SMEs) developed by EFRAG.

For smaller firms, this means choosing between:

Both require reliable data on energy, workforce, and governance — but differ in detail and assurance levels.

2. Option A: In-House CSRD Reporting

🧩 Benefits

• Full control over your data, processes, and timing.
• Internal knowledge growth for long-term sustainability management.
• Lower recurring costs once templates and systems are set up.
• Easier integration with finance and HR processes.

💶 Typical Costs

Total estimated range: €5,000–€20,000 annually.

⚙️ How to Make It Work

1. Start with the VSME Basic Module (B1–B11) — covers core environmental and workforce metrics. Learn more about VSME Basic vs Comprehensive modules.
2. Use existing data from invoices, payroll, and HR systems. See our CSRD requirements checklist for what you need.
3. Adopt automation tools (such as CSRD Pro) to extract data from energy bills and supplier invoices. Compare manual vs software CSRD reporting approaches.
4. Scale gradually to include the Comprehensive Module or full ESRS alignment.

3. Option B: Hiring a Sustainability Consultant

🧩 Benefits

• Expert guidance on CSRD and ESRS requirements.
• Tailored strategy and governance recommendations.
• Confidence in external assurance and audit readiness.
• Time savings — consultants handle structure and drafting.

💶 Typical Costs

Typical total: €10,000–€35,000 (depending on complexity).

⚠️ Drawbacks

• High dependency: Knowledge leaves with the consultant.
• Costly for updates: Ongoing help needed for future cycles.
• Variable quality: Expertise and pricing differ across EU markets.

4. Hybrid Model: Combining In-House and Automation

A growing number of small and growing businesses (SMEs) are adopting a hybrid model — combining automation software for data collection with targeted consulting for validation and assurance.

CSRD Pro, for example, automatically extracts data from uploaded utility bills, supplier invoices, and fuel receipts, pre-fills VSME disclosures, and generates formatted draft reports. Consultants can then focus on narrative quality and assurance instead of raw data entry.

5. Competitor Landscape: Enterprise vs SME Tools

Several software options exist for sustainability reporting, though most cater to larger companies:

For small and growing businesses (SMEs), CSRD Pro offers a proportionate solution: automation where it matters, human review where it counts.

6. Decision Guide: Which Option Fits Best?

Tip: Start with internal ownership and automation — then add consultants for assurance once reporting becomes routine.

7. Quick Wins for Small and Growing Businesses

• Reuse your existing financial and HR data.
• Begin with the Basic Module for proportionate compliance.
• Use automation tools to process invoices and utilities.
• Keep supporting evidence (bills, receipts, policies) ready for review.
• Schedule a light-touch consultant review before publication.

8. Summary: Balancing Cost, Control and Confidence

In short, small and growing businesses gain the most value from automation-first, consultant-second reporting. Enterprise platforms remain valuable for complex, multi-country reporting — but for small teams, CSRD Pro offers a simpler, cost-effective path toward reliable, compliant reporting.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive (EU 2022/2464).
• VSME – Voluntary Sustainability Reporting Standard for non-listed SMEs (EFRAG, 2024).
• Basic Module – Core environmental, workforce, and governance disclosures.
• Comprehensive Module – Optional advanced disclosures (C1–C9).
• ESRS – European Sustainability Reporting Standards for large companies.
• Scope 1 and 2 emissions – Direct and indirect emissions from operations and energy.
• Turnover – Total business income before expenses.

To help you compare the costs and benefits of in-house vs. consultant approaches, use our ROI calculator:

This tool helps you quantify the financial impact of each approach based on your company size and needs.