Introduction
For small IT consultancies, software developers, and tech service firms, sustainability might not seem as urgent as it is for manufacturers or energy companies. Yet many large corporate and public-sector clients now ask their suppliers — including digital and tech providers — to share environmental, social, and governance (ESG) data. If you’re new to the topic, start with our plain-language guide to CSRD reporting.
Under the Corporate Sustainability Reporting Directive (CSRD), large firms must report value-chain impacts, including from professional services and digital suppliers. That means even small tech businesses need to demonstrate responsible operations.
This guide explains which ESG topics matter most for office-based, low-emission firms and how to prepare simple, credible sustainability data that meets client expectations without unnecessary complexity.
1. Why CSRD Matters for IT and Tech Firms
The CSRD requires large and listed companies to disclose how sustainability affects their business — and how their business affects people and the environment. For IT and tech providers, this often translates into data requests from clients covering energy, workforce, and governance information.
Typical client questions include:
- How much energy do your offices and data centres use?
- Do you use renewable electricity?
- What policies cover ethics, diversity, or remote work?
- How do you manage cybersecurity and data protection?
Even if your company isn’t required to report under CSRD, providing this information builds trust, supports tender processes, and positions your firm as a transparent, responsible partner.
2. What to Report: Key ESG Topics for Tech Businesses
IT and tech service providers usually have a smaller environmental footprint, but they still influence key areas of sustainability reporting.
1. Energy & GHG Emissions
- Office energy use: electricity and heating (kWh per year).
- Remote work energy impact: estimate energy from staff home working or travel.
- Data centres: report total server electricity use or supplier sustainability certification (e.g., ISO 50001).
- Renewable energy share: note whether your electricity comes from renewable sources. For a data collection workflow, see CSRD guidance for operations managers.
Example: A 25-person software firm in Denmark reported annual electricity use of 18,000 kWh, with 100% renewable sourcing through a green energy contract — a simple but powerful disclosure.
2. Own Workforce
- Employee headcount: full-time, part-time, and contract roles.
- Diversity metrics: gender balance, new hires, and pay equity.
- Training and well-being: professional development hours, mental health support, flexible work options.
- Health & safety: office ergonomics and remote work conditions. Find disclosure templates in CSRD workforce reporting for HR managers.
These indicators map directly to CSRD’s “Own Workforce” (ESRS S1) topic, which most clients expect from service providers.
3. Business Conduct
- Ethical policies: anti-bribery, conflict of interest, and fair competition policies.
- Data and privacy governance: alignment with GDPR and cybersecurity best practice.
- Supply chain ethics: confirmation that your subcontractors comply with local labour and environmental laws.
Even small companies can summarise these in one page, referencing existing company policies.
3. How to Start Collecting Your Data
Most IT firms already have the needed data — it just isn’t labelled “sustainability.” Here’s how to organise it:
| Category | Where to Find It |
|---|---|
| Office energy bills | Monthly invoices or landlord reports |
| Cloud or data centre energy | Service provider dashboards or sustainability reports |
| Employee demographics | HR or payroll records |
| Training hours | Internal learning platforms or annual review logs |
| Ethics and conduct policies | Staff handbook or code of conduct |
Collect one year’s worth of data as a baseline, then update annually. Consistency is more valuable than precision, and the CSRD requirements checklist can help you stay organised.
4. Reporting Made Simple: Using the VSME Framework
For smaller, non-listed firms, the Voluntary Sustainability Reporting Standard for SMEs (VSME) provides a simple template aligned with CSRD — compare the options in VSME Basic vs Comprehensive Module.
Under the Basic Module, tech firms can disclose:
- Annual energy use (kWh) and renewable percentage
- Employee numbers, diversity, and training hours
- Policies on ethics, anti-corruption, and data security
These are the same indicators your large clients use, just scaled to your size. The Comprehensive Module adds optional metrics such as emissions reduction targets or detailed governance statements, suitable as you grow.
5. Tips for Small IT and Tech Teams
- Start with what’s measurable: energy bills and workforce data are quick wins.
- Use simple tools: spreadsheets or cloud dashboards — no need for specialist software at first.
- Integrate sustainability into client proposals: mention renewable energy use, flexible work, or ethical policies.
- Review annually: even a short, one-page summary is enough for most clients.
- Communicate improvements: show year-on-year progress rather than perfect numbers.
Example: A UK-based cybersecurity consultancy began tracking remote work energy use. Within a year, they cut travel emissions by 20% and used this data to win a government contract with sustainability criteria.
Frequently Asked Questions
Do small tech firms have to report under CSRD?
No. CSRD applies mainly to large and listed companies. However, many corporate clients now require ESG data from suppliers to complete their own reports, so preparing a short summary is valuable.
What’s the biggest sustainability focus for IT companies?
Energy efficiency and workforce policies. Offices and data centres use electricity continuously, while social topics like diversity, inclusion, and ethics define the company’s long-term credibility.
Can I use data from cloud providers?
Yes. Most major providers (AWS, Azure, Google Cloud) publish sustainability dashboards showing energy use and renewable power shares. You can reference these directly in your reporting.
What if we have only remote staff?
You can estimate average home office energy use per employee (around 2–3 kWh/day) and describe digital efficiency measures like video call optimisation or shared workspaces. For more guidance, read How to include remote workers in CSRD metrics. The focus should be on transparency, not precision.
Key Terms
- CSRD: Corporate Sustainability Reporting Directive — EU regulation requiring large firms to report sustainability data.
- VSME: Voluntary Sustainability Reporting Standard for SMEs — EFRAG’s simplified framework for small, non-listed companies.
- Scope 2 Emissions: Greenhouse gas emissions from purchased electricity or heating.
- Own Workforce (ESRS S1): CSRD topic covering employment, diversity, and well-being.
- Business Conduct (ESRS G1): CSRD topic covering ethics, anti-corruption, and governance.
Conclusion
Sustainability reporting for IT and tech service providers doesn’t have to be complex. By focusing on energy efficiency, ethical conduct, and workforce well-being, your company can meet client expectations under CSRD and demonstrate leadership in responsible business.
With minimal effort and consistent documentation, sustainability becomes not just a compliance task — but a strong selling point for modern digital firms.