CSRD Reporting Denmark: Guide for Danish SMEs

Introduction

Denmark is one of the EU’s frontrunners in sustainability — and its businesses are expected to stay ahead under the Corporate Sustainability Reporting Directive (CSRD).

From 2025 onward, Danish companies will begin publishing detailed environmental, social, and governance (ESG) disclosures. Even if your small and growing business (SME) is not directly covered, your clients, investors, or banks may soon ask for sustainability data.

This guide explains how CSRD applies to Danish small and growing businesses (SMEs), who must report, and how the Voluntary SME (VSME) Standard offers a simpler, proportionate way to get started.

For clarity on company size thresholds, see Is My Company Too Small for CSRD? Size Questions Answered.

1. How CSRD Applies in Denmark

The CSRD has been incorporated into Danish law through amendments to the Årsregnskabsloven (Danish Financial Statements Act), managed by the Danish Business Authority (Erhvervsstyrelsen).

Denmark follows the EU-wide implementation schedule, meaning the first wave of companies report for FY2024 (in 2025).

CSRD Timeline for Danish Companies

2. Danish Size Thresholds for CSRD Applicability

In Denmark, a company qualifies as “large” if it exceeds two of the following three thresholds for two consecutive years:

Companies above these thresholds will be directly required to report under CSRD. However, many small and growing business suppliers to large corporations will still need to provide sustainability data as part of value chain reporting.

3. The Voluntary SME (VSME) Standard in Denmark

The VSME Standard, published by EFRAG in 2024, is designed to help SMEs report sustainability information in a simpler way that aligns with CSRD.

VSME Reporting Modules

Small and growing businesses can select relevant modules and gradually expand over time. Reports may be produced in Danish or English, depending on audience needs.

4. Where and How to Report in Denmark

For companies under mandatory CSRD:

• Reports must be filed digitally with the Erhvervsstyrelsen alongside annual financial statements.
• Reports must comply with ESRS (European Sustainability Reporting Standards).
• Data must be presented in XHTML format with a limited assurance statement from an accredited auditor.

For VSME (voluntary) reporters:

• Reports are not filed with authorities, but can be shared with banks, clients, or investors directly.
• It’s good practice to publish them on your website and maintain a copy for seven years, in line with Danish accounting law.

5. Steps for Danish Small and Growing Businesses to Get Started

Step 1: Determine if you’re in scope

Check your size against the Danish thresholds above. If you don’t meet them, you can still start voluntarily using VSME.

Step 2: Select your reporting framework

Decide whether you’ll use:

• Full CSRD (for large or listed companies), or
• VSME (for SMEs and suppliers starting out).

Step 3: Gather key data

Start with what’s easiest to access:

• Energy use and invoices
• Waste and recycling data
• Employee headcount and gender ratios
• Training and policy information

For help embedding data collection into daily routines, see How to Integrate CSRD Data Collection into Existing Workflows.

Step 4: Assign internal responsibility

Nominate one person — often from finance or operations — to coordinate sustainability data each quarter.

Step 5: Plan for external review

While assurance is optional for SMEs, a review by your revisor (auditor) improves quality and readiness for future CSRD adoption. For audit preparation, read How to Prepare for Your First CSRD Audit or Review.

6. Danish Support and Resources

Danish small and growing businesses can access support through:

• Erhvervsstyrelsen (Danish Business Authority) – Official CSRD and ESG implementation guidance.
• Dansk Industri (DI) – Templates and training for corporate sustainability.
• SMVdanmark – SME-focused sustainability toolkits and events.
• Finanstilsynet (FSA) – Guidance for financial institutions under CSRD.
• Revisorforeningen (FSR) – Technical support for assurance and ESRS interpretation.

Many industry associations also offer sector-specific CSRD workshops for small and growing businesses in manufacturing, retail, and professional services.

7. Example: Simplified Danish Small Business Disclosure

Virksomhed: NordWind ApS Regnskabsår: 2025 Antal medarbejdere: 37 Energiforbrug: 92.000 kWh elektricitet (100 % grøn energi) Affald: 2,5 ton, hvoraf 1,8 ton genanvendt Uddannelse: 10 timer pr. medarbejder Ligestilling: 45 % kvinder i medarbejderstaben Governance: Etikkode og klimamål godkendt af bestyrelsen i 2025

This sample aligns with the VSME format and can be published as part of a small and growing business’s annual report or website disclosure.

Frequently Asked Questions

Is CSRD mandatory for all Danish SMEs?

No. Only large or listed companies must report. However, SMEs will likely receive data requests from clients or banks.

Can SMEs publish reports in English?

Yes, both Danish and English reports are accepted for voluntary reporting.

Do SMEs need an auditor for VSME reports?

No, but limited assurance is recommended for credibility and future readiness.

How long should sustainability data be stored?

At least seven years, according to Danish accounting retention requirements.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive, EU regulation for ESG disclosure.
• VSME – Voluntary SME standard for simplified sustainability reporting.
• ESRS – European Sustainability Reporting Standards guiding disclosure content.
• Limited assurance – Moderate-level audit verifying data accuracy.
• Revisor – Certified Danish auditor responsible for financial and sustainability assurance.

Conclusion

For Danish small and growing businesses, CSRD represents a shift toward structured sustainability — but it doesn’t have to be complex. Starting with the VSME Standard helps build data management habits, prepare for future client requests, and demonstrate environmental and social responsibility.

By aligning early, small and growing businesses can turn reporting into a competitive advantage and strengthen trust with partners and investors.

To plan your reporting year and milestones, see the Annual CSRD Reporting Calendar.