Let’s first define which companies have to submit ESG reports for 2024 – they need to have >500 employees and/or >40mEuro turnover and/or >20mEuro assets. So, at the moment the new ESG laws are not directly relevant to SMEs. However, an SME might be part of a supply chain for a company that does need to report, in which case you should expect to have to provide details about your Environmental, Social and Governance (ESG) performance.

However, the thresholds for companies that must report is reduced each year… at the moment listed SMEs with 10 employees or more will need to start reporting from 2027 and there are suggestions that all companies, listed or otherwise, with 40 employees or more having to report from 2028.