What Waste Categories Must SMEs Report Under CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is mainly aimed at large companies, but many small and medium-sized enterprises (SMEs) will be asked by banks, investors, or bigger clients to provide waste information. The good news: the categories you need to report are straightforward.
Waste Categories Under CSRD
Under the European Sustainability Reporting Standards (ESRS) — and the simplified Voluntary Sustainability Reporting Standard for SMEs (VSME) — SMEs should report their annual waste generation, broken down into two groups:
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Non-hazardous waste Everyday waste that does not pose a direct risk to people or the environment. Examples: paper, packaging, food waste, plastics, wood, textiles.
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Hazardous waste Waste containing harmful substances that require special handling. Examples: solvents, oils, paints, batteries, fluorescent tubes, electronic waste.
In addition, SMEs should also disclose:
- Waste diverted to recycling or reuse — how much was recovered rather than sent to landfill or incineration. See how to track recycling and reuse.
- Material flows (if relevant) — companies in material-heavy sectors (like manufacturing, construction, or packaging) should also track the main raw materials they use. Learn if packaging materials count as material flows.
Why This Matters
- Non-hazardous waste: shows how effectively your business manages everyday resources.
- Hazardous waste: proves you handle high-risk materials safely and in line with regulations.
- Recycling/reuse: demonstrates support for the EU’s circular economy goals — something banks and customers increasingly value.
Practical Steps for SMEs
- Check your waste invoices and contracts. Providers often give breakdowns by waste stream.
- Keep hazardous waste certificates. Disposal companies must issue these — store them securely.
- Ask for recycling rates. Waste collectors can provide percentages or weights.
- Start with a simple split. Reporting just hazardous, non-hazardous, and recycled waste is enough for the VSME Basic Module.
Example Disclosure (Small Office)
In 2024, we generated 7 tonnes of waste: 6.5 tonnes of non-hazardous (mainly paper and packaging) and 0.5 tonnes of hazardous (electronic equipment and batteries). Of the total, 65% was recycled or reused.
Short, factual statements like this are usually sufficient.
Key Terms
- Corporate Sustainability Reporting Directive (CSRD) — An EU law requiring large companies — and eventually some medium-sized ones — to report on environmental and social impacts. SMEs may still be asked for CSRD-style data by banks or large clients.
- Voluntary Sustainability Reporting Standard for SMEs (VSME) — A simplified, voluntary framework to help SMEs provide sustainability data when requested.
- Basic Module — The minimum VSME reporting set, covering essentials such as energy, waste, emissions, and workforce data.
- Circular Economy — An approach that keeps materials in use for longer by recycling, reusing, or repurposing them.
- Hazardous Waste — Waste with harmful properties requiring special handling (e.g. chemicals, oils, batteries).
- Non-hazardous Waste — General waste streams without harmful properties, such as paper, packaging, and food waste.