CSRD Reporting for Niche & Craft Manufacturers: A Supplier’s Guide

If you produce specialist components, handcrafted parts, or precision materials for larger brands, you may already be hearing from your customers about ESG or CSRD reporting. Whether it’s a German automotive group or a French electronics company, big manufacturers now need sustainability data from every level of their supply chain — including small, niche, and craft suppliers. See what’s driving these requests in How SMEs handle sustainability data demands from large clients.

This guide explains how small manufacturers (SMEs) can prepare simple, credible sustainability information for their clients. You’ll learn how to track your energy use, materials, waste, and workforce data without new software or consultants — and stay competitive as a valued Tier-2 supplier in Europe’s evolving sustainability landscape.

1. Why Craft and Niche Manufacturers Are Being Asked for ESG Data

Under the Corporate Sustainability Reporting Directive (CSRD), large EU companies must publish detailed sustainability information covering their entire value chain. This includes suppliers who make small but critical parts — from metal fabricators to electronics assemblers and craft workshops.

Your client’s report must include information such as:

• Energy use and greenhouse gas emissions (Scopes 1 and 2, and often Scope 3)
• Material sourcing and waste management practices
• Workforce conditions and safety measures

This doesn’t mean you need to produce a 100-page report — but it does mean you should be ready to provide clear, basic data when requested. Doing so helps you maintain contracts and shows that your business is future-ready.

2. Start with What You Already Track

Most niche manufacturers already hold the core data needed for sustainability reporting. You can start with a few simple records, organised using the tips from CSRD data collection for operations managers:

Collecting these in one place (a spreadsheet or shared folder) turns day-to-day information into sustainability data. Over time, you can expand your tracking with simple estimates or additional categories, such as packaging materials or transport fuel.

3. Tracking Energy and Emissions (GHG)

Even for small manufacturers, tracking energy and emissions is achievable:

Step 1: Record your total annual energy use

Note electricity and gas consumption (in kWh) from your invoices. If you use fuels like diesel or LPG, record those in litres, following the steps in Reporting fuel receipts for CSRD.

Step 2: Convert to CO₂ equivalents

You can use free EU-based carbon calculators to estimate emissions. Start with Scope 1 (on-site fuel) and Scope 2 (purchased electricity). These alone meet most client data requests.

Step 3: Identify efficiency improvements

Small steps like switching to LED lighting, upgrading compressors, or optimising heating can show measurable progress in future reports — and lower costs at the same time.

4. Tracking Resource Use and Waste

Material efficiency and waste control are core CSRD themes, especially for industrial supply chains.

What to Track:

• Raw material use (kg or tonnes): steel, wood, resin, plastics, etc.
• Recycled content: percentage of reused or recycled materials.
• Waste generated (kg): total and proportion sent to recycling.
• Hazardous waste: type and disposal method (if applicable).

You don’t need perfect precision — start with supplier invoices and waste collection records. The goal is to show you’re monitoring and improving, not achieving zero waste overnight.

5. Workforce and Safety Data

Larger clients also report on social and governance topics, so you may be asked for:

• Number of employees, by gender or contract type
• Health and safety data, such as accidents or lost-time incidents
• Training hours or workforce development programmes
• Fair pay or collective agreements (if applicable)

If your business has fewer than 50 employees, a simple annual summary is enough. For example, borrow formats from CSRD workforce reporting for HR managers:

6. Using the VSME Standard for Simplicity

The Voluntary Standard for non-listed SMEs (VSME) developed by EFRAG is a practical tool for small manufacturers. It includes a Basic Module covering:

• Energy and GHG emissions
• Resource use and waste
• Workforce safety and pay
• Anti-corruption and governance

By following VSME’s structure, you can create a short sustainability statement — often one or two pages — that meets most client requirements and aligns with EU terminology. Use VSME Basic vs Comprehensive Module to decide when to add more detail.

7. Example: A Small Metalworks Shop

A 12-person workshop in Italy supplying precision parts to automotive clients began tracking:

• Monthly electricity use (in kWh)
• Scrap metal collected for recycling
• Staff safety training hours

After compiling one year of data, they submitted a one-page sustainability summary to their main client. The client later featured the supplier in its annual CSRD report as a “high-compliance SME partner”, securing continued business and new referrals.

Frequently Asked Questions

Do small manufacturers have to report under CSRD?

No. Only large and listed companies are legally required to report. However, most large manufacturers need supplier data for their own reports, so you may still be asked to share information.

How detailed does my data need to be?

Start simple: annual totals and estimates are acceptable. Over time, you can refine your data. The key is consistency — using the same method and units each year.

Can I use spreadsheets instead of ESG software?

Absolutely. For small operations, a spreadsheet is perfectly fine. You can always move to a software tool later if client requests become more complex.

Will this take much time each year?

Once your template is set up, maintaining it usually takes 5–10 hours per year — much less than responding to repeated client questionnaires individually.

Key Terms

• CSRD: Corporate Sustainability Reporting Directive — EU law requiring large companies to disclose sustainability data, including supplier impacts.
• VSME: Voluntary Sustainability Reporting Standard for SMEs, aligned with CSRD.
• Scope 1 & 2 emissions: Direct fuel use and purchased electricity emissions.
• Resource use: Materials, water, and energy consumed in production.
• Waste recycling rate: Percentage of total waste diverted from landfill.

Conclusion

For small and craft manufacturers, sustainability reporting isn’t about bureaucracy — it’s about visibility and opportunity. By keeping simple, structured data on energy, materials, waste, and workforce, you can meet client expectations under CSRD and strengthen your position in the value chain.

With modest effort and the right framework, your workshop can turn sustainability from a request into a competitive advantage.