Why ESG reporting matters for SMEs

ESG reporting is no longer something reserved for large enterprises. For most small and medium-sized companies, it enters the business through customer requests, supplier questionnaires, or internal discussions around compliance and sustainability. In many cases, it starts with a simple question:

“Should we start working with ESG reporting?”

From that moment, responsibility is often assigned to someone in finance, HR, operations, or administration. Not because ESG is their primary role, but because they are closest to the data needed to create an ESG report.

In ESG reporting falls upon HR or administration in around 50% of the cases. In 30% of the cases it lands with legal or finance, and in the remaining 20% it usually lands in management with either the CEO or CFO of the company.

This guide is designed for that exact situation. It provides a practical overview of what ESG reporting is, why it matters for SMEs, and how to get started using a simple, structured approach, including a free ESG report template you can use immediately.

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Download the free ESG report template

To make ESG reporting more accessible, we have created a free ESG report template for SMEs, aligned with the VSME framework.

Download the ESG report template (Google Slides)

The template includes:

• A complete ESG report structure
• Predefined sections for Environmental, Social, and Governance
• Example data points and placeholders
• Guidance comments to help you fill in each section

This allows you to move from “where do we start?” to a structured ESG report in a matter of hours. While the template itself is useful, you can also use it directly in the Wardn platform if you wish.

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What is an ESG report?

An ESG report is the sustainability equivalent of a financial report.

Where a financial report shows revenue, costs, and profitability, an ESG report shows how a company performs across environmental, social, and governance factors. It provides a structured overview of key sustainability metrics, such as CO₂ emissions, employee data, and internal policies.

In simple terms: An ESG report tells you where you stand.

It is a snapshot of your company’s current impact, based on measurable data. For most SMEs, it is not about advanced modelling or perfect accuracy, it is about creating a clear, structured baseline.

A useful way to think about it is this:

ESG is stepping on a scale.
Sustainability is what you do after.

This distinction is important.

Many companies try to “do sustainability” without first understanding their baseline. ESG reporting solves that by turning sustainability into something measurable, comparable, and actionable.

For SMEs, this makes ESG reporting less about compliance and more about clarity:

• It helps identify where to focus efforts
• It provides a foundation for decision-making
• It enables communication with customers, partners, and stakeholders

Ultimately, an ESG report is not the goal. It is the starting point for structured, long-term sustainability work.

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What is an ESG report template?

An ESG report template is a pre-structured format that helps companies create ESG reports without starting from scratch. The reporting template is used as a baseline for an ESG report, and will ultimately need to be filled out with data from your company.

For SMEs, this is especially valuable, as instead of trying to start from scratch, you can now get a head start in your journey towards making your own ESG report.

Instead of designing the report structure yourself, a template provides:

• A clear outline of what to include
• A standardized way of presenting data
• A faster path to a professional output

This significantly lowers the barrier to getting started with ESG reporting.

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How to create an ESG report (step-by-step)

Step 1: Define your purpose

Before collecting any data, it is important to understand why ESG reporting matters for your company. This reasons can vary a lot from company to company, but below we have outlined the most typical reasoning why companies decide to start their ESG reporting journey. 

The most common reasons that companies start developing their ESG report includes:

• Meeting customer requirements (they have usually been asked for ESG data)
• Preparing for future regulation (if you are a supplier to a 1k employee company)
• Starting your sustainability journey (ESG shows you where to get started)
• Strengthening market positioning (People like companies who show they care about the future)

Without a clear purpose, ESG reporting risks becoming a purely administrative task, and your report will die in a drawer somewhere without ever creating any real value.

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Step 2: Choose the right framework

The ESG landscape includes multiple frameworks such as GRI, CSRD, SASB, and TCFD. Some of these are old and outdated, some of them are only designed for large companies, and a lot of certification will claim to be a framework, but in reality they are a certificate. Don’t be fooled, and this can significantly increase the complexity of your ESG reporting.

For any European SME, save yourself some time, and just with the VSME framework, which is designed specifically for small and medium-sized companies. It is the market standard and your go-to framework for anything related to ESG reporting for smaller companies.

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Step 3: Identify and collect data

While the framework provides the guardrails you need for your ESG report, you still need a data plan, that gives you an overview of the data you need for your ESG report. Most SMEs already have 70–80% of the data required for ESG reporting.

The challenge is not availability — it is structure.

Data is typically spread across:

• Finance (energy costs, utilities)
• HR (employee data, training, absence)
• Operations (transport, materials, waste)

When you have settled on your framework, you should have a pretty good idea of the data you need. If you are looking for something easy and free to get your data plan, you can always use the free user on the Wardn platform.

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Step 4: Write your report

Once your data is collected, the final step is to structure it into an ESG report.

For most SMEs, the simplest way to do this is by using a predefined template — like the one provided in this guide. The template gives you a clear structure, so you can focus on presenting your data rather than deciding how to format the report.

In practice, you can start by adding your company branding, such as logo, colors, and visuals, and then fill in the relevant data fields based on your collected ESG data. This includes metrics like emissions, energy consumption, employee data, and governance practices.

For data points that are not self-explanatory, it is important to add short descriptions. If certain numbers are based on estimates, fluctuate significantly, or require context, a brief explanation helps ensure transparency and makes the report easier to understand.

The goal is not to create a perfect report, but a clear and structured overview of where your company stands today — and a foundation you can build on over time.

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What an ESG report includes

A typical ESG report for SMEs can vary a lot in length. We have seen reports around 60 pages and some that are two. Either way, they just need to comply with whatever framework you have used for the report. What we recommend you include in your report is;

Company overview

This section includes basic information about the business, structure, and activities. You need to include stuff like NACE code, locations of the sites you own or manage, and what products and services you provide and to who.

ESG strategy

A short explanation of how the company approaches sustainability and ESG. This includes policies, activites, who is responsible for sustainability as well as your thoughts as a company, on how you see your own role in the transition towards a more sustainable future.

Environmental data

This section includes CO₂ emissions, energy consumption, waste, and resource use. It is not confined to simply the numbers, but needs to include text as well that explains the numbers in the report.

Social data

Workforce size (FTE), diversity, training, and employee well-being. This section also include the initiatives you have for your employees, possible employee survey results and the general wellbeing of your employees.

Governance

This usually includes policies, compliance, and internal structures. For most companies, this is the most simple section of the report, and primarily focuses on the governance structures that the company have in place.

Using a structured template ensures that all relevant areas are covered consistently.

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When to move from template to ESG software

Templates work well for getting started, but an ESG report is something that needs to be updated every year. Starting with a new template every year can be tedious, especially if you haven't built processes around how to get the data for the report, and you end up with a lot of work that could have been avoided had you swapped earlier to a piece of dedicated ESG software. Usually these software platform will provide;

• Better data structure
• Easier collaboration across teams
• Faster updates and reporting cycles
• Legislative and updated to frameworks
• Makes it easier to transfer to other employees
• Keeps CO2 emission factors updated
• Can help make sure your ESG report is up to date

If ESG reporting is something you want to do going forward, applying a platform early could be a good idea. If you are looking for platform specifically for SMEs, Wardn is a good option with quick onboarding, automated data collection, and a professional ESG reports in a few days rather than months. 

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FAQ: ESG report template for SMEs

What is an ESG report template?
An ESG report template is a structured format that helps companies create ESG reports without starting from scratch. The ESG report template offered in this article is curated by Wardn ApS and is based on hundreds of ESG reports delivered to our clients.

Is there a free ESG report template available?
Yes, this template is free and designed specifically for SMEs to simplify ESG reporting. It is aligned 100% with VSME and lives up to whatever your clients and partners could ask you about in relation to ESG.

Which ESG framework should SMEs use?
Most SMEs in Europe should use the VSME framework, as it is designed specifically for smaller companies. It is designed by EFRAG and delivers exactly the foundation an SME needs to start their journey into ESG.

How do you create an ESG report as an SME?
By defining a purpose, selecting a framework, collecting relevant data, and structuring it into a report that you brand with your own colors, logo and fonts. You can do it by hand using the template provided, or use a software made for SMEs like the Wardn platform.

Can templates replace ESG software?
Templates are a good starting point, but software solutions are better suited for scaling and ongoing ESG reporting. Year one could be an easy win with a template, but in the long run, software just have so many perks that it becomes the obvious choice.

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