Sustainability in the supply chain for SMEs: what is requested, why and how to respond in 2026
More and more clients and large companies request sustainability information from their suppliers. This guide explains what SMEs are asked for, how much it costs to prepare and how to turn it into a competitive advantage.
What is the supply chain in sustainability and why does it affect SMEs?
The supply chain in sustainability includes all activities, relationships and actors involved in creating a product or service: from raw material suppliers to the end customer, including logistics, production and associated services.
Large companies that report on sustainability must consider not only their direct activity but also the impacts of their value chain. That is why their SME suppliers receive questionnaires, data requests and ESG evidence demands with increasing frequency, also from banks and public administrations.
The “Omnibus I” Directive (in force since 18 March 2026) has narrowed this scenario: the CSRD will apply to companies with more than 1,000 employees and more than €450 million net turnover, for financial years starting on or after 1 January 2027, and it introduces a “value-chain cap”: for their sustainability report, companies with 1,000 employees or fewer cannot be required to provide more information than the voluntary standard. That standard is the European Voluntary Standard, set out in Delegated Regulation (EU) 2026/1560 (in force since 24 September 2026) and based on EFRAG’s VSME; the July 2025 Commission Recommendation that set out the VSME ceased to produce legal effects when it entered into force. The cap applies to financial years starting on or after 1 January 2027.
For an SME, this is not just a requirement to respond to: it is an opportunity to differentiate as a reliable, prepared supplier. Companies that respond with structured data and clear documentation gain credibility and reduce the risk of losing contracts due to lack of information.
What sustainability information do clients request from SMEs?
Environmental information
- Carbon footprint (Scopes 1, 2 and sometimes 3)
- Energy consumption and energy sources
- Waste management and recycling rates
- Water and material usage
- Environmental certifications (if any)
Social and governance information
- Working conditions and regulatory compliance
- Equality plan and gender pay gap
- Occupational health and safety
- Code of ethics and whistleblowing channel
- Responsible procurement policies
The most common formats are EcoVadis-type questionnaires, proprietary forms from large companies, or direct requests for specific data. Having information prepared in a sustainability report allows you to respond agilely to any format.
Is an SME obligated to report on sustainability in its supply chain?
In 2026, most SMEs have no direct legal obligation to report on sustainability. However, market pressure is real:
- Large clients in scope of the CSRD keep asking their suppliers for data, within the voluntary standard if the supplier has 1,000 employees or fewer.
- Banks assess ESG risks when granting finance.
- Public procurement values sustainability documentation (sustainability in public procurement).
- European funds and grants include ESG criteria in selection.
Not responding to these requests may mean losing contracts or being excluded from supplier selection processes.
How much does it cost to prepare sustainability information for clients?
| Scenario | Estimated cost | Result |
|---|---|---|
| Already have report + footprint | 5-15 hours of adaptation | Agile response to questionnaires |
| Preparation from scratch (outsourced) | €1,500 – €4,000 | Reusable base for all clients |
| Internal preparation | 40-80 hours of dedication | Internal knowledge + documentation |
The investment pays off quickly: a prepared ESG database serves to respond to multiple clients, tenders and financing requests throughout the year.
What data should I prepare as a supplier?
- Carbon footprint: calculated and documented (calculation guide).
- Energy consumption: electricity, gas, fuels.
- Waste: types, quantities, managers.
- Employment: workforce, contract types, training.
- Internal policies: equality, code of ethics, risk prevention.
- Certifications: those you have (ISO 14001, ISO 9001, etc.).
The key is to centralise this information, document it and keep it updated. A sustainability action plan completes the information with planned improvement measures.
Value chain
Suppliers, processes and clients that form part of the business.
Requirements
Clients and large companies pass requirements to their suppliers.
Opportunity
Managing sustainability well strengthens your position as a supplier.
1) Why the value chain is key in sustainability
Many companies must analyse impacts not only from their direct activity but also from their value chain. This includes suppliers, subcontractors and, in some cases, the use of products or services.
2) How this affects SMEs
Although an SME may not be required to report under complex frameworks, it can be indirectly affected when a client needs to collect sustainability information from its entire value chain.
3) What is typically requested in practice
- Basic environmental information (energy, waste, emissions).
- Working conditions and regulatory compliance.
- Internal policies or improvement commitments.
- Carbon footprint data or reduction plans, if applicable.
4) Sustainability as a commercial relationship tool
Having structured information allows the SME to respond quickly to client questionnaires, reduce commercial friction and strengthen its position as a reliable supplier.
5) Common mistakes
- Responding in an improvised way to each client.
- Promising commitments that cannot be fulfilled.
- Not documenting the information shared.
Frequently asked questions about sustainability in the supply chain for SMEs
What does 'value chain' mean in sustainability?
The value chain includes all activities and relationships involved in creating a product or service, from suppliers to end customers.
Why is sustainability information requested across the value chain?
Because larger companies and financiers need to understand and manage environmental and social impacts beyond their direct operations.
Is an SME legally required to report on its value chain?
In most cases there is no direct legal obligation for SMEs, but market requirements from clients and business partners are increasing. Following the "Omnibus I" Directive, companies with 1,000 employees or fewer cannot be required by CSRD in-scope companies to provide more information than the EU Voluntary Standard (VS), the evolution of VSME.
What kind of information is typically requested from SMEs?
Basic information about environmental impacts, labour practices, legal compliance and, in some cases, carbon footprint data or improvement plans.
How much does it cost to prepare sustainability information for clients?
If you already have a sustainability report and calculated carbon footprint, the adaptation cost is minimal (5-15 hours). If starting from scratch, preparing the base costs between €1,500 and €4,000 outsourced, and serves for multiple clients.
What data will my clients ask about sustainability?
The most common: carbon footprint, energy consumption, waste management, labour policies, regulatory compliance and, in some sectors, data on raw materials and traceability.