CSRD for SaaS Companies: Sustainability Reporting for Software Businesses
Whether you’re a small SaaS company, a growing software scale-up, or a subsidiary of a larger tech group, sustainability reporting is increasingly part of doing business. Some software companies report under CSRD directly; others use VSME voluntarily to meet client, investor, or procurement expectations.
Either way, CSRD shifts the conversation for SaaS businesses away from heavy industrial impacts and towards energy use in digital infrastructure, workforce practices, and responsible technology governance. This guide focuses on what actually matters for software companies, rather than generic IT or consultancy reporting.
Do SaaS Companies Fall Under CSRD?
CSRD applies based on company size, listing status, and group structure — not sector. Some SaaS companies will be in scope directly, while many smaller software businesses fall outside the mandatory thresholds.
However, even when CSRD is not mandatory:
- Enterprise customers increasingly request ESG data from software vendors
- Investors expect structured sustainability disclosures
- Group reporting often pulls in subsidiary data
This is why many SaaS companies start with voluntary reporting using VSME. A broader overview of thresholds and timelines is available in CSRD for SMEs: the complete 2025 guide.
What Makes SaaS Sustainability Reporting Different?
Unlike manufacturing or retail, SaaS impacts are:
- Largely indirect
- Concentrated in energy use and people practices
- Closely tied to data, privacy, and governance
CSRD recognises this. Software businesses are not expected to report industrial waste or physical supply chains, but they are expected to explain how digital services are delivered responsibly.
Key Sustainability Metrics for SaaS Companies
Data Centre and Cloud Energy Use
For most SaaS businesses, energy and emissions come primarily from:
- Cloud hosting providers
- Data centres
- Office energy (often relatively small)
Typical disclosures include:
- Cloud provider energy or emissions data (where available)
- Scope 2 electricity consumption for offices
- Clear explanation of estimation methods
You are not expected to own the emissions — but you should explain how you understand and manage them. Many SaaS companies align this with guidance in the energy & GHG emissions topic hub.
Remote and Hybrid Work Practices
Remote work significantly affects SaaS sustainability profiles.
Relevant disclosures often cover:
- Percentage of remote or hybrid employees
- Policies reducing commuting and office space
- Home-working assumptions (where used)
These are typically narrative disclosures supported by simple metrics, rather than complex calculations.
Workforce, Diversity, and Inclusion
People are central to software businesses, making workforce disclosures especially relevant.
Common metrics include:
- Headcount and growth
- Gender diversity (overall and leadership)
- Training, upskilling, and wellbeing initiatives
CSRD does not impose quotas, but it does expect transparency and consistency.
Ethical AI and Responsible Technology Use
For SaaS companies using AI or advanced data processing, governance matters.
Good practice disclosures may include:
- Ethical AI principles or policies
- Human oversight of automated decisions
- Data privacy and security governance
Even if AI is a small part of your product, documenting how risks are considered helps meet business conduct expectations under CSRD.
Reporting to Clients and Investors
Many SaaS companies first encounter CSRD-related requests through:
- RFPs and vendor assessments
- Customer ESG questionnaires
- Investor due diligence
Using a structured baseline (often VSME-aligned) allows you to:
- Answer multiple requests consistently
- Avoid rewriting the same explanations
- Build credibility without over-reporting
This is especially helpful when responding to larger customers with their own CSRD obligations.
How SaaS Companies Typically Structure Reports
For small and growing SaaS businesses, sustainability reporting is usually:
- Light on metrics
- Strong on explanation and assumptions
- Focused on material topics only
Reports often include:
- A short sustainability overview
- Energy and emissions summary
- Workforce and governance sections
This approach keeps reporting achievable without enterprise tools or consultants.
Frequently Asked Questions
Do SaaS companies need to report Scope 3 emissions?
Only if they are material. Many SaaS companies start with Scope 2 (electricity) and explain cloud-related impacts qualitatively before adding Scope 3 estimates later.
How do we report cloud provider emissions?
Most SaaS companies rely on data published by their cloud providers and document assumptions clearly. Transparency matters more than precision in early reporting years.
Is ethical AI reporting mandatory under CSRD?
There is no standalone “ethical AI” standard, but governance and business conduct disclosures should cover how technology risks are managed if relevant.
Can a small SaaS team handle this in-house?
Yes. Most SaaS companies manage sustainability reporting with spreadsheets and simple documentation. Consistency and clarity are more important than scale.
Key Terms
- CSRD – Corporate Sustainability Reporting Directive
- VSME – Voluntary Sustainability Reporting Standard for SMEs
- Scope 2 – Emissions from purchased electricity
- Scope 3 – Indirect value-chain emissions
- Business conduct – Ethics, governance, and responsible technology use
Next Steps for SaaS Companies
Start by identifying what genuinely drives your impacts: cloud energy, people, and governance. Document existing policies and data, even if imperfect, and align them with CSRD or VSME structures.
With a clear focus on SaaS-specific metrics and honest explanations, sustainability reporting becomes a practical way to support sales, investor confidence, and long-term growth — not an administrative burden.