From paper to practice: why reporting should never become more important than real sustainability

These proposals are not final. The European Commission aims for a threshold of 1000 employees, while Parliament wants 1750. In the upcoming trilogue, where the Commission, Council and Parliament agree on one final text, the actual threshold will be decided. The result will likely end up somewhere in between.

What is clear is the direction. Fewer companies in scope and less complexity. Europe recognises that you do not cut carbon emissions by producing bigger reports. The demand for data went too far and is now being reduced, giving entrepreneurs more time to focus on real sustainability instead of paperwork.

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Genuine progress does not happen in Excel

Many small businesses recognise this. You spend time and money collecting data, updating spreadsheets and completing templates. But what you really want to do is improve your building, reduce your carbon emissions or strengthen your supply chain.

Europe’s new direction makes it clear that sustainability rules are not meant to overload smaller companies. Less pressure on reporting means more room for action. The question then becomes simple. Do you spend your budget on more paperwork, or do you invest in measures that make a difference tomorrow?

Every entrepreneur knows the answer. You want real progress.

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Let reporting help you, not slow you down

Reporting has value. It gives your customers, financiers and partners structure, insight and confidence. It enables you to show where you stand and what steps you are taking. But reporting without action achieves nothing.

Real impact happens when reporting supports improvement and not when it becomes the goal. That is where small and medium-sized businesses have room to grow. Smarter reporting and, above all, investing in practical steps that help your business move forward.

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Keep going because it creates value, not because you have to

Despite all the political noise, businesses continue to invest in sustainability. Deloitte research shows that more than 80% of large companies will continue investing. Not because they must, but because it creates value. Lower costs, a stronger brand, better customer relationships and fewer risks.

Those results do not come solely from a CSRD report. Real value comes from improving your business and reporting honestly about your progress.

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The new EU VSME Standard

For entrepreneurs who want to be transparent but keep it practical, there is a logical alternative. The new European VSME Standard.

This voluntary standard is created for medium-sized and small businesses and matches what the market is asking for:

• Only the relevant data
• No noise and no extra pressure in your supply chain
• No hundreds of pages and no mandatory audit
• One European standard that clearly shows what you do
• A simple framework that everyone understands

With the VSME Standard, you can easily and consistently show how you handle sustainability. It helps you answer customer questions, speeds up financing applications and makes tenders more straightforward.

You get transparency without hassle and support for your daily business operations.

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Invest in sustainability instead of unnecessary reporting

A significant advantage of the proposed changes is the substantial reduction in administrative work. Earlier estimates show that a threshold of 1000 employees would save around 6.3 billion euros per year in Europe. With the new proposal of 1750 employees, these savings will likely be even higher. Fewer companies in scope means less reporting, fewer data requests across supply chains and more time to focus on real sustainability.

This is just as relevant for small and medium-sized businesses. The less time and money you need to spend on complexity, the more room you have to invest in actions that strengthen your business.

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Invest in action. In concrete steps that deliver results. That is where the impact is.
And reporting. It will always be part of doing business, but keep it smart, light and practical. Reporting should be a tool, not the goal.